Housebuilders to lose £3bn while Persimmon axes 1,000 staff

Housebuilders will see at least £3bn wiped off the value of their land assets as another 1,300 jobs are axed this week.

Figures quoted in the Observer suggest if the housing market falls 17.5% as predicted, land values could deteriorate by up to £4bn.

Last week the industry was suffering after 2,300 jobs were cut in two days by housebuilders including Barratt Developments, Galliford Try and Ballymore.

Major housebuilder Persimmon is expected to cut 1,000 jobs this week and Kier Residential is set to axe 300 staff – 60% of its workforce.

Persimmon will confirm exactly how many staff will be made redundant alongside a trading update on Tuesday.

But it is expected to bring the total number of job losses in the sector to 3,200 in seven days.

The firm has been looking to reduce its debt burden since the acquisition of Westbury for £643m in 2006. It was knocked out of the FTSE 100 earlier this year.