Homebuilder Vistry to cut hundreds of jobs amid UK housing slump
VISTRY Group has told hundreds of employees they may lose their jobs as the company cuts costs in the midst of Britain’s housing slump.
The London-listed homebuilder is weighing as many as 19 job cuts in each of its business units, with reductions expected to be in the region of 200, according to people with knowledge of the plans. The firm has begun redundancy consultations with affected employees in the roughly 5,000-strong workforce, said the people, who asked not to be identified because the plans aren’t public.
A Vistry spokesperson declined to comment.
The potential job losses come as Britain’s property market endures a slump in activity triggered by higher mortgage rates and the threat of a house price plunge. The nation’s homebuilders have hinted at tougher times ahead.
Persimmon said this week that it’s likely to sell no more than 9,000 homes this year, compared with almost 15,000 in 2022. Taylor Wimpey – another homebuilder warning of a sales slump in 2023 – has also said it’s planning to cut jobs.
Still, there’s a glimmer of hope that Britain has already endured the worst of its housing downturn as mortgage rates return to more affordable levels. Persimmon, Taylor Wimpey, and Barratt Developments have all noted signs of improvement in weekly private sales since January.
Vistry – which agreed to buy rival homebuilder Countryside Partnerships for £1.25 billion (S$2 billion) in September – said in January that while it was too early to predict private sales, the company was “cautiously optimistic that buyer sentiment will improve over the coming months.”
No final decisions have been made on redundancies at Vistry and it remains unclear how many jobs will ultimately be cut. BLOOMBERG
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