Jobs lost in homebuilding sector but long-term prospects 'remain attractive'

Developer Taylor Wimpey has expressed confidence in the long-term prospects of the housing market despite warning of further job losses in the short term.<br/>

Developer Taylor Wimpey has expressed confidence in the long-term prospects of the housing market despite warning of further job losses in the short term.

The firm confirmed that about 900 jobs would go throughout the UK to save £45 million - but refused to give further details.

A statement revealed that 13 of its 39 regional offices will close and explained that the action is "consistent with our view that markets are likely to remain weak for an extended period".

The statement went on to say: "Our focus remains on cash management, cost reductions and seeking to achieve a stable weekly sales rate.

"The board remains convinced of the fundamental attractions of the business over the medium and long-term. We will continue to evaluate options to secure that value for our shareholders."

It has been a bad week for the construction industry. Barratt Developments announced this week that it would make about 1,000 people redundant, taking the sector's job losses to nearly 2,300 in just two days.

High street lenders' mortgage 'rationing' - where products have been withdrawn and larger deposits demanded - has led to a dramatic slowdown in the housing market.