1,100 builder jobs flattened.

Byline: By GARETH DEIGHAN Industrial Reporter

BUILDER Persimmon said today around 1,100 jobs would go as it battles against plunging sales and house values.

The news comes under a week after Geordie builders Barratt Developments said they would have to cut 1,000 jobs - with 50 in the North East - and Taylor Wimpey announced 900 job cuts.

The beleaguered housebuilder said in a trading statement today that sales were down 31% in the past six months and added a restructure of the company - which is almost complete - would result in more than 1,100 staff losing their job.

The group, which trades as Charles Church, Persimmon Homes and Westbury Partnerships and who have sites across the North East, said the past six months had "undoubtedly been the most challenging period" in its recent history.

In the statement the group 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."

Housebuilders have been hit by the credit crunch as the mortgage drought has meant homebuyers have been unable to secure the finance they need.

North East homeware company Dunelm Homes said today, though, while they had experienced a slowdown in the last quarter of the last financial year, they remained confident about the future.

Will Adderley, chief executive, said: "Our focus remains to keep doing the best job we can for our customers, and our stores are in good shape."

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CREDIT CRUNCH: Persimmon are cutting 1,100 jobs as house sales fall