Looming Redundancy Crisis for House Building Firms
Article published on 25th May 2008
The Home Builders Federation have warned government ministers that unless action is taken to support the industry, house building companies will have to make sweeping redundancies within their work forces.
The federation is pressing the government to cut interest rates even further and is also putting pressure on banks to draw more upon their £50 billion package from the Bank of England to increase availability of mortgages.
Policy advisor to the House Builders' Association, Roger Humber, has indicated that the employees most vulnerable to being made redundant are going to be land teams, followed by planners and various skilled trades-people.'
President of the National Association of Estate Agents, Stewart Lilly, has criticised government policy related to the issue, saying that whereas the government has seen the rise house building they asked for, there has not been enough interest or sales to keep this process and the companies responsible for it afloat - hence the need and continued risk of redundancies.
According to the latest figures released by the National House Building Council, the number of new homes registered to be built fell from 19,398 in the twelve months leading up to march 2007, to 13,058 in the 12 months leading up to March 2008.
Home buyers are concerned that they might lose their deposits on new houses if the construction company building them go bust.
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