Housebuilder initially wanted to keep sites open

Redrow is to furlough a 鈥渟ignificant proportion鈥� of its workers and start closing down all its sites immediately, the firm said in an update to the City.

Redrow

The 拢2.1bn-turnover housebuilder said it would 鈥渋mmediately commence 鈥榝urloughing鈥� a significant proportion of our employees鈥� under the job retention scheme announced by chancellor Rishi Sunak last week.

Redrow had initially said it was keeping sites open despite Boris Johnson鈥檚 decision to impose 鈥渓ockdown鈥� restrictions across the UK. However, on Wednesday the firm changed its stance, making clear it would investigate their safe closure.

Today鈥檚 statement went further, saying the board had decided to commence 鈥渨ith immediate effect鈥� an orderly and safe closure of all sites and offices.

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Redrow had been prioritising its remaining construction operations on those sites with homes close to completion, but now says that doing this had become 鈥渋ncreasingly impractical鈥� as is suppliers had been impacted by coronavirus.

Just Berkeley Group of the listed housebuilders is still keeping sites open. All others have either shut down or announced plans to close  imminently.

Under the 鈥渇urlough鈥� scheme announced by the chancellor, employers will be able to claim up to 80% of wages of workers put on temporary leave, in order to tide them over until work can restart. It is not known what support if any will be given to subcontractors working on affected sites.

The firm said it was also in discussion with its lenders about extending its borrowing facilities, and had made an application to the Bank of England to make use of government-backed loans under the new covid-19 corporate financing facility.

John Tutte, executive chairman said, 鈥淭hese are unprecedented times. The actions we have announced today will give us the flexibility to manage the business through this turbulent period to ensure we are ready to resume production when it is safe to do so.鈥�

It comes as the government has told people not to move house to try to limit the spread of coronavirus across the UK.

It said buyers and renters should delay moving while emergency stay-at-home measures are in place.

The government has also said that properties can only be viewed online.

 

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