The battered UK housebuilding sector suffered another blow yesterday when Barratt Developments and two other firms said they planned to cut more than 1200 jobs as they push for cost cuts to endure a rapidly worsening market.

The battered UK housebuilding sector suffered another blow yesterday when Barratt Developments and two other firms said they planned to cut more than 1200 jobs as they push for cost cuts to endure a rapidly worsening market.

Barratt said it had held consultations with staff over plans to eliminate about 1000 positions in response to the worst crisis the housing market has seen since the early 1990s. Galliford Try, which owns Scottish-based Morrison Construction, confirmed that it was cutting 256 jobs in its housebuilding division in response to the weaker market.

Ballymore, the residential and commercial developer, will cut 50 jobs - more than 10% of its workforce - as part of a management shake-up.

A spokesman for Barratt said most of the job losses will be felt in the group's operations in England. As part of the cull, Barratt will close two of its 32 divisions and merge eight into four. The spokesman said the group's offices in Chester and Sheffield will be closed. Two will be merged in Leeds, as well as the Midlands region and in Southampton. Aberdeen-based Barratt North Scotland will be combined with Barratt's Edinburgh office. The company did not say how many jobs could be cut north of the border.

The troubled housebuilder has already gone through previous rounds of office closures following the purchase last year of Wilson Bowden for £2.2bn, the acquisition that makes Barratt the most indebted company in the sector.

Taylor Wimpey said on Wednesday it would cut 900 jobs after failing to secure additional financing from investors, while Persimmon last month pointed to imminent redundancies.

Trade association Home Builders' Federation recently warned that job losses would likely reach into the tens of thousands as the downturn worsened at unprecedented speed.

A spokesman for Barratt confirmed the Newcastle-Upon-Tyne-based firm is in consultations with around 1000 workers, or 15% of its 6700-strong workforce.

Barratt, which is carrying a debt burden of more than £1.7bn, is expected to provide more details in a full-year trading update on July 10.

The market is also hoping to learn whether the group has reached agreement with banks to refinance part of its debt in order to avoid potential breaches of its loan covenants or if it needs to raise funds like its similarly debt-laden rival, Taylor Wimpey.

Redrow and Persimmon are scheduled to update the market on July 8 and July 9, respectively.