Credit crunch lays waste to hundreds of property jobs

HUNDREDS of workers in the Lothians housebuilding industry have been made redundant as the credit crunch hits home.

Construction companies, surveyors and even brickmakers are laying off staff as the property meltdown takes it toll, fuelling fears hundreds more could go.

Caradale Traditional Bricks in Armadale has been forced to make almost 100 staff redundant after a 20 per cent fall in sales, while housebuilders Cala Homes, Taylor Wimpey and Persimmon Homes are all shedding staff.

City property solicitor firms and surveyors are also said to be considering cuts in the face of new figures showing the number of properties changing hands across the UK falling to its lowest level since records began in 2005. Annual mortgage lending in May also plunged by 56 per cent to a record low. New-builds appear to be the worst hit, resulting in mass redundancies among some of the biggest housebuilding firms.

Stewart Baseley, chairman of the Home Builders' Federation said: "There isn't a builder in the land not considering job losses. Figures will likely reach into the tens of thousands. I've never seen a downturn escalate as quickly."

John Cassie, regional chairman of Persimmon, said: "Regrettably, a number of redundancies are to be made and members of staff at Persimmon Homes have entered into a consultation process."

Cala Homes, which has a number of developments on-going such as Grovewood Hill at East Craigs, has also shed staff. A spokesman said: "We have taken a number of cost-saving actions as a result of current market conditions. These, regrettably, include some redundancies."

Taylor Wimpey, Britain's biggest builder which includes Bryant Homes, is in talks with staff to close 13 of its 39 UK offices, which could cost up to 600 jobs.

At Caradale Traditional Bricks in Armadale, a sales fall has resulted in almost 100 staff being laid off, though director John Turnbull hopes it is a temporary. "We're in the middle of staff cuts at the moment," he said. "Product sale is down by 20 per cent and we've had to pull back on production."