About 75,000 Fewer Workers Will Be Needed In The Building Industry,

[geoffk]

cant find it elseware so here it is

link http://www.bloomberg.com/apps/news?pid=206...&refer=news

May 21 (Bloomberg) -- U.K. homebuilders will cut tens of thousands of jobs as the 19 billion-pound ($37 billion) industry grapples with the worst housing slump in more than a decade, according to the chairman of the Home Builders Federation.

``There isn't a builder in the land who isn't considering overheads and job losses,'' Stewart Baseley said in an interview yesterday. Job losses ``will be in the tens of thousands,'' he said. ``I've never seen a downturn escalate as quickly as this.''

Taylor Wimpey Plc, Britain's biggest homebuilder, may eliminate 600 jobs and Persimmon Plc, the second-largest, has postponed work on new developments after the seizure in global credit markets prompted lenders to withdraw some mortgages. House prices fell in April from a year earlier, the first annual decline since 1996, according to Nationwide Building Society. The industry employs about 300,000 people including subcontractors.

Homebuilding stocks have tumbled by more than 50 percent since spiraling subprime mortgage losses sparked a global tightening in credit markets. Both Taylor Wimpey and Bellway Plc were reduced to ``sell'' on May 16 by analysts at Goldman Sachs, which predicted more ``negative news flow on credit availability, mortgage lending, home pricing, and trading'' during the summer months. That followed a similar downgrade of Bovis Homes Group Plc at Merrill Lynch & Co.

Taylor Wimpey, based in London, declined 1.6 percent to 109.5 pence as of 10:36 a.m. in the U.K. capital today. Persimmon had fallen 1.1 percent to 548.5 pence.

`Unique' Slump

The current housing slump is ``unique,'' because it's been caused by fewer loan approvals rather than spiraling unemployment or inflated borrowing rates, Baseley said. The number of mortgages granted dropped to a record low in March, almost half the level of the previous year and the lowest since the Bankers Association started keeping records in 1997.

``The data is one way at the moment,'' Baseley said.

The government should abolish the housing sales tax, known as stamp duty, for some first-time buyers or those limited to small deposits, he said.

Redrow Plc on May 13 said it has stepped up headcount reductions in the last few months and Barratt Developments Plc forecast a day later its number of new developments will decline. Taylor Wimpey may close one-third of its regional offices, according to a company official.

Overall, about 75,000 fewer workers will be needed in the industry, given homebuilders' volumes are down about 25 percent, said Mark Hughes, an analyst at Panmure Gordon & Co.

Unemployment Rising

Cuts to the workforce will hurt all regions of the country and will affect related industries too, from building-material suppliers to lawyers and removal men, Baseley said.

Wolseley Plc, the world's biggest distributor of plumbing and heating equipment, has a hiring freeze in place after cutting 400 jobs in the U.K. during the second half of last year.

``There has been a more pronounced slowdown in the U.K. over recent weeks,'' Steve Webster, finance director at the Reading- based supplier of pipes, said on a call today.

Any reductions will also add to pressure on national unemployment levels, threatening consumer spending and economic growth. The jobless rate rose in April for a third month as the deepening economic slowdown led companies to eliminate workers.

Migrant Workers

Moreover, a majority of construction workers jettisoned by the homebuilding industry will struggle to find work in commercial building or office interiors because those markets are also struggling, Panmure's Hughes said.

A decade of booming house prices, coupled with TV programs such as ``Location, Location, Location'' aimed at amateur property developers, has spurred construction growth and attracted plumbers and other skilled workers from eastern Europe. Three-quarters of the job losses will involve those immigrants, said Hughes. The pound has lost 25 percent of its value against the Polish zloty since August last year, adding to the push factors.

``It's the natural attrition of migration,'' the Panmure analyst said. ``There is now less work in the U.K., the pound is weaker and wage inflation in countries like Poland is at double digit levels, so elements of the reasons for them coming here are fading.'' he said.

[Guest KingCharles1st]

I think we already had this once today- but it sure is scary shit.

Lets face it- these people actually make things- or wont now...

[abharrisson]

Hopefully it will mean that building costs come down... I am hoping from £1000 psm to something like £800 psm... I know local builders are still quite in demand through the extend rather than move shift thats going on.. but hopefully it will have some effect.

[bobthe~]

Hopefully it will mean that building costs come down... I am hoping from £1000 psm to something like £800 psm... I know local builders are still quite in demand through the extend rather than move shift thats going on.. but hopefully it will have some effect.

I wonder whether the influx of Polish builders has had a dampening effect on the amounts that builders have been able to charge in recent years.

Back in the 80s the "richest" of my friends (of a similar age, I knew a few proper rich people as well) was a scaffolder. He works behind a bar now (but that is for reasons other than the downturn).

The loadsamoney character was a plasterer.

It would be interesting to see the cost psm change over the years and compare then to now. No idea where those figures would come from though.*

Edit to add. I am a ~ not a builder.

Edited May 21, 2008 by bobthe~

[ukdaasfan]

I think we already had this once today- but it sure is scary shit.

Lets face it- these people actually make things- or wont now...

Most of them will just go home. Not particularly scary.

75,000 in a working population of at least 20 million is nothing....

[Brian Potter]

Anecdotally, as a small one man band consultant in the north-west with several clients, I can tell you that the construction industry (not just house building) is crashing quicker than I have ever witnessed at the moment. Only strong public sector work is preventing a total crash in the sector.

Work is getting harder to come by and I know of three major contractors in the region who are laying off large numbers of staff.

Tenders for new work are still coming in but the industry is starting to cut each others throats to win work.

I suspect I will be only working 2-3 days a week in the not too distant future.

[time 2 raise interest rates]

cant find it elseware so here it is

link http://www.bloomberg.com/apps/news?pid=206...&refer=news

May 21 (Bloomberg) -- U.K. homebuilders will cut tens of thousands of jobs as the 19 billion-pound ($37 billion) industry grapples with the worst housing slump in more than a decade, according to the chairman of the Home Builders Federation.

``There isn't a builder in the land who isn't considering overheads and job losses,'' Stewart Baseley said in an interview yesterday. Job losses ``will be in the tens of thousands,'' he said. ``I've never seen a downturn escalate as quickly as this.''

Taylor Wimpey Plc, Britain's biggest homebuilder, may eliminate 600 jobs and Persimmon Plc, the second-largest, has postponed work on new developments after the seizure in global credit markets prompted lenders to withdraw some mortgages. House prices fell in April from a year earlier, the first annual decline since 1996, according to Nationwide Building Society. The industry employs about 300,000 people including subcontractors.

Homebuilding stocks have tumbled by more than 50 percent since spiraling subprime mortgage losses sparked a global tightening in credit markets. Both Taylor Wimpey and Bellway Plc were reduced to ``sell'' on May 16 by analysts at Goldman Sachs, which predicted more ``negative news flow on credit availability, mortgage lending, home pricing, and trading'' during the summer months. That followed a similar downgrade of Bovis Homes Group Plc at Merrill Lynch & Co.

Taylor Wimpey, based in London, declined 1.6 percent to 109.5 pence as of 10:36 a.m. in the U.K. capital today. Persimmon had fallen 1.1 percent to 548.5 pence.

`Unique' Slump

The current housing slump is ``unique,'' because it's been caused by fewer loan approvals rather than spiraling unemployment or inflated borrowing rates, Baseley said. The number of mortgages granted dropped to a record low in March, almost half the level of the previous year and the lowest since the Bankers Association started keeping records in 1997.

``The data is one way at the moment,'' Baseley said.

The government should abolish the housing sales tax, known as stamp duty, for some first-time buyers or those limited to small deposits, he said.

Redrow Plc on May 13 said it has stepped up headcount reductions in the last few months and Barratt Developments Plc forecast a day later its number of new developments will decline. Taylor Wimpey may close one-third of its regional offices, according to a company official.

Overall, about 75,000 fewer workers will be needed in the industry, given homebuilders' volumes are down about 25 percent, said Mark Hughes, an analyst at Panmure Gordon & Co.

Unemployment Rising

Cuts to the workforce will hurt all regions of the country and will affect related industries too, from building-material suppliers to lawyers and removal men, Baseley said.

Wolseley Plc, the world's biggest distributor of plumbing and heating equipment, has a hiring freeze in place after cutting 400 jobs in the U.K. during the second half of last year.

``There has been a more pronounced slowdown in the U.K. over recent weeks,'' Steve Webster, finance director at the Reading- based supplier of pipes, said on a call today.

Any reductions will also add to pressure on national unemployment levels, threatening consumer spending and economic growth. The jobless rate rose in April for a third month as the deepening economic slowdown led companies to eliminate workers.

Migrant Workers

Moreover, a majority of construction workers jettisoned by the homebuilding industry will struggle to find work in commercial building or office interiors because those markets are also struggling, Panmure's Hughes said.

A decade of booming house prices, coupled with TV programs such as ``Location, Location, Location'' aimed at amateur property developers, has spurred construction growth and attracted plumbers and other skilled workers from eastern Europe. Three-quarters of the job losses will involve those immigrants, said Hughes. The pound has lost 25 percent of its value against the Polish zloty since August last year, adding to the push factors.

``It's the natural attrition of migration,'' the Panmure analyst said. ``There is now less work in the U.K., the pound is weaker and wage inflation in countries like Poland is at double digit levels, so elements of the reasons for them coming here are fading.'' he said.

Let's hope the poles don't leg it or rentals will collapse. If Brownski's got any sense, he'll talk them in to saying they're

suffering from depression and stick them all on the social. Then we can all pay.

[newbee]

cant find it elseware so here it is

link http://www.bloomberg.com/apps/news?pid=206...&refer=news

May 21 (Bloomberg) -- U.K. homebuilders will cut tens of thousands of jobs as the 19 billion-pound ($37 billion) industry grapples with the worst housing slump in more than a decade, according to the chairman of the Home Builders Federation.

``There isn't a builder in the land who isn't considering overheads and job losses,'' Stewart Baseley said in an interview yesterday. Job losses ``will be in the tens of thousands,'' he said. ``I've never seen a downturn escalate as quickly as this.''

Taylor Wimpey Plc, Britain's biggest homebuilder, may eliminate 600 jobs and Persimmon Plc, the second-largest, has postponed work on new developments after the seizure in global credit markets prompted lenders to withdraw some mortgages. House prices fell in April from a year earlier, the first annual decline since 1996, according to Nationwide Building Society. The industry employs about 300,000 people including subcontractors.

Homebuilding stocks have tumbled by more than 50 percent since spiraling subprime mortgage losses sparked a global tightening in credit markets. Both Taylor Wimpey and Bellway Plc were reduced to ``sell'' on May 16 by analysts at Goldman Sachs, which predicted more ``negative news flow on credit availability, mortgage lending, home pricing, and trading'' during the summer months. That followed a similar downgrade of Bovis Homes Group Plc at Merrill Lynch & Co.

Taylor Wimpey, based in London, declined 1.6 percent to 109.5 pence as of 10:36 a.m. in the U.K. capital today. Persimmon had fallen 1.1 percent to 548.5 pence.

`Unique' Slump

The current housing slump is ``unique,'' because it's been caused by fewer loan approvals rather than spiraling unemployment or inflated borrowing rates, Baseley said. The number of mortgages granted dropped to a record low in March, almost half the level of the previous year and the lowest since the Bankers Association started keeping records in 1997.

``The data is one way at the moment,'' Baseley said.

The government should abolish the housing sales tax, known as stamp duty, for some first-time buyers or those limited to small deposits, he said.

Redrow Plc on May 13 said it has stepped up headcount reductions in the last few months and Barratt Developments Plc forecast a day later its number of new developments will decline. Taylor Wimpey may close one-third of its regional offices, according to a company official.

Overall, about 75,000 fewer workers will be needed in the industry, given homebuilders' volumes are down about 25 percent, said Mark Hughes, an analyst at Panmure Gordon & Co.

Unemployment Rising

Cuts to the workforce will hurt all regions of the country and will affect related industries too, from building-material suppliers to lawyers and removal men, Baseley said.

Wolseley Plc, the world's biggest distributor of plumbing and heating equipment, has a hiring freeze in place after cutting 400 jobs in the U.K. during the second half of last year.

``There has been a more pronounced slowdown in the U.K. over recent weeks,'' Steve Webster, finance director at the Reading- based supplier of pipes, said on a call today.

Any reductions will also add to pressure on national unemployment levels, threatening consumer spending and economic growth. The jobless rate rose in April for a third month as the deepening economic slowdown led companies to eliminate workers.

Migrant Workers

Moreover, a majority of construction workers jettisoned by the homebuilding industry will struggle to find work in commercial building or office interiors because those markets are also struggling, Panmure's Hughes said.

A decade of booming house prices, coupled with TV programs such as ``Location, Location, Location'' aimed at amateur property developers, has spurred construction growth and attracted plumbers and other skilled workers from eastern Europe. Three-quarters of the job losses will involve those immigrants, said Hughes. The pound has lost 25 percent of its value against the Polish zloty since August last year, adding to the push factors.

``It's the natural attrition of migration,'' the Panmure analyst said. ``There is now less work in the U.K., the pound is weaker and wage inflation in countries like Poland is at double digit levels, so elements of the reasons for them coming here are fading.'' he said.

Its not first hand but just been informed that the bosses visited a site in Tunbridge and sacked all bar polish workers. ????

[Voice of calm]

I've got very mixed feelings about this.

I remember when builders were decimated in the last property downturn. You could get great work done very cheaply but I did end up feeling sorry for them.

But, especially given that I'm based in London, I've had quite a few years of paying through the nose and struggling to find builders that were half decent. I don't want to be unkind but there are some builders out there that were practically asking for a crash. When I've questioned some very high estimates I've even had builders, very cheekily, tell me it's OK as it's a fraction of what I'll make from the increase in value! Madness.

That said, I have a feeling it's the more reliable small building firms and individuals that will loose out most. The fly-by-nights will quickly move on to other things. And the big firms can shed staff and rely, to a degree at least, on big contracts like Crossrail, the Olympics etc.

[yawnIHateSundays]

Cuts to the workforce will hurt all regions of the country and will affect related industries too, from building-material suppliers to lawyers and removal men, Baseley said.

I'm sure noone will shed a tear if bloodsucking lawyers get made redundant

[Leonard Hatred]

Surely they can all get jobs holding down the tarpaulin on abandoned building sites?

[yawnIHateSundays]

Edit to add. I am a ~ not a builder.

You're a tilde? Isn't that some kind of valuable rice?