Job fears over building trade slump

By Matthew Legg Business editor

Last updated 12:11, Thursday, 10 July 2008

CUMBRIA’S building trade is facing its toughest period in a generation as the credit crunch tightens, house prices fall and fuel costs spiral.

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Bleak house: Builders fear there will be little work in the coming months

The construction sector is bearing the brunt of the economic downturn as Britain’s overheated property market cools and new mortgage approvals plummet.

Carlisle builder Bob McKnight said the current downturn is the worst he has experienced in 32 years in the trade. And he fears worse is to come.

He said: “There’s definitely a downturn and it started about last October.

“I haven’t had to lay anyone off yet, but I probably will have to in three or four weeks time.

“The amount of drawings we have in has dropped by about 50 per cent – it’s the worst I’ve known in 32 years.

“I think it will get even worse next year. After Christmas time I just can’t see anyone wanting work done.

“It’s not just new houses, but things like extensions as well.

“We are going to build three more houses and then pack that side in.”

Nationally the picture is even more bleak.

Bovis Homes and Redrow announced yesterday that they will axe 750 jobs as the companies try to ride out the property slump.

Those cuts bring the total of job losses to at least 4,650 for Britain’s biggest housebuilders after Persimmon, Taylor Wimpey and Barratt Developments also announced restructuring moves in recent days.

Kent-based Bovis will axe 400 jobs, and Redrow is closing two of its offices as it reduces its headcount by around 350.

Andy Clode, managing director of Dalston builder Castellum, said his firm had avoided the worst of the downturn, but agreed that the worst may be yet to come.

“We are picking up most of our work in south Scotland now, Carlisle is very quiet,” he said.

“It is the smaller, commercial jobs that are keeping us busy, house building is very quiet at the moment.

“I have not had to lay anyone off, but I am going to say to my staff that we need more efficiency from them, to cut costs. I want to work through this and not lay anyone off.

“The picture nationally is bleak, we have avoided the worst of it so far, but it’s next year that I am really worried about.”