Homebuilders blues likely to trigger boom in renting

09 2008
Britons confident of getting a foot onto the property ladder in the UK through the government's drive to build thousands of new homes and level out the current supply and demand inconsistencies have been dealt a blow with the news that two of the country's leading homebuilders are axing hundreds of jobs as they continue to be hit by the fallout of the global credit crunch.

Statements released this week by both Redrow and Bovis confirm that they both plan on cutting jobs - possibly up to 40 per cent of their total workforces - meaning their original construction targets are highly unlikely to be met.

"The UK housing market continues to be severely affected by the credit squeeze," a statement from the company read.

"Homebuyer confidence is now also being influenced by concerns about the future for house prices and interest rates.

"As a result, the market for both new and second hand homes has declined rapidly to transaction levels not experienced for very many years with the price of homes now declining."

Renting will therefore continue to be the most attractive option in locations where there is especially high demand for new homes, such as London, Manchester and Brighton. ADNFCR-1219-ID-18676734-ADNFCR

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