Bloor Homes blames commercial pressure as it issues letter from West Midlands office informing supply chain of cuts

Bloor Homes has become the latest housebuilder to impose cuts on its supply chain.

A letter from its West Midlands office in Tamworth said it was suffering from 鈥渃ommercial pressure鈥�.

Bloor Homes has nine regional offices across the country. The move follows cuts from housebuilders including Taylor Wimpey, Barratt and Belway.

The letter from Bloor Homes (Tamworth) Limited said: "We have reviewed the situation at Bloor Homes and find that we are having to fight for every sale which is resulting in significant discounts over and above those budgeted being given to achieve sales"

Extracts from Bloor Homes letter to subcontractors

We have reviewed the situation at Bloor Homes and find that we are having to fight for every sale which is resulting in significant discounts over and above those budgeted being given to achieve sales.



Given this we need to reduce our costs in order to be able to continue to develop our sites. If we are unable to do this we will have no alternative than to delay starting on new sites until the market improves along with imposing very tight restrictions on word in progress.

To help us achieve these savings we are asking our contractors on existing sires to reduce their costs to use by 5%, which shall be effective from 1st February 2008.

I am sure you fully understand the need for these steps as it is in all our interests for us to continue to develop our sites.

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