News

Housebuilder Taylor Wimpey plans to cut 900 jobs in its UK operations following a "significant downturn" in the organisation's major markets.

Following a period of drastically lower weekly sales rates, along with falling average selling prices than in recent years, the organisation confirmed today (2 July) that it will close 13 of its 39 regional offices.

The situation is also unlikely to improve in the short term, according to a trading statement released this morning.

Taylor Wimpey expects the British market to remain weak through 2008.

The company had nets debts at the end of June of approximately £1.7 billion, largely following the merger between former rivals Taylor Woodrow and George Wimpey in July 2007.

The housebuilder has also failed to secure the reported £500 million investment sought earlier this week, and confirmed in a statement from the organisation on June 30th.

While a number of potential investors have been contacted with a view to raising further equity capital, Taylor Wimpey has been unable to secure a "satisfactory" deal under present market conditions.

The news comes as the Royal Institution of Chartered Surveyors (Rics) reports residential property has led the sharpest fall in UK construction since 1995.

Shares in Taylor Wimpey fell 28 per cent at 9.18am following the news, down to 32.5 pence a share for a yearly high of 384 pence.