Housebuilders Bovis Homes and Redrow has said they are cutting staff by 40% due to the slump in the housing market.

Bovis reported a 32% drop in sales in the first half of the year and Redrow also said its sales declined by 19%.

Redrow reported it was fighting against "an unprecedented decline in the fortunes of the UK housing market".

Redrow is also closing two of its 10 offices in Warrington and Basingstoke.

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Bovis said it expects around 400 of its staff will have been laid off since the beginning of the year. It is also closing its eastern regional office.

Bovis said average selling prices across private and social housing had dropped from £189,600 in the first six months of 2007 to £167,500 in the first half of 2008.

The announcements comes after homebuilder Persimmon said that it has axed 1,100 staff since January. Barratt Developments and Taylor Wimpey together revealed around 2,000 job losses.

See: Persimmon Axes 1,100 Jobs

(CD)