Beleaguered housebuilder Persimmon has reported that sales were down 31% in the past six months - and confirmed it had cut 1,100 jobs so far this year.

The York-based group, which trades as Charles Church, Persimmon Homes and Westbury Partnerships, said the past six months had "undoubtedly been the most challenging period" in its recent history.

Average selling prices had fallen to £181,500 in the first half of the year from £189,255 in the same period last year, it added.

Persimmon, one of the UK's biggest housebuilders, said half-year sales revenues were down by more than a third at £1 billion.
The 1,100 job cuts come as part of an overhaul to save money amid the housing market woes.

Persimmon said: "We have reappraised our business in the light of the significant change in trading conditions and have taken action to address the new challenges presented.

"We now have a lower level of overheads and structure appropriate for the current levels of business, whilst at the same time remaining well placed to achieve an increase in output whenever mortgage availability and the overall market improves."

The group's job losses add to nearly 2,000 job cuts announced last week by rival firms Taylor Wimpey and Barratt Developments.

Housebuilders have been hit hard by the credit crunch as the mortgage drought has meant homebuyers have been unable to secure the finance they need, while property price falls have put people off buying a home.

Persimmon said conditions had continued to worsen since its last grim update in late April, with falling consumer confidence affecting all areas of the housing market.

Private house sales have been the worst affected sector, with legal completions down 39% in the first six months against 2007 as weekly visitor levels dive by 20%.  But the group said it did not expect to make any significant write-downs in the value of its land holdings in next month's interim results.

Below market value prices secured at the time of purchase had shielded it from much of the price falls so far, according to Persimmon.

Alan Ritchie, general secretary of the construction workers' union Ucatt, said: "We are seeing job losses in the housebuilding sector across all regions. However, it needs to be remembered that housebuilding only makes up 15% of the construction industry.

"While other sectors are getting tighter, there is nothing like the downturn in housebuilding. The vast majority of construction workers in housebuilding are self-employed and not included in many of these redundancy notices."