Housing and construction firm Kier Group yesterday announced it was to shed 350 jobs as the latest industry operator to announce cutbacks due to a slump in sales.

The group, which in May announced the closure of its Spalding office in Lincolnshire with the loss of around 100 jobs, said yesterday it would be closing three residential housing offices in Glasgow, Lincoln and Borehamwood that would further reduce the headcount by another 250 jobs. Around 100 staff north of the border are expected to be affected.

Operations are to be merged into the group's headquarters in Tempsford Hall, near Sandy in Bedfordshire.

Like other housebuilders, Kier said it had seen a marked reduction in sales and visitor levels over the past few months. Sales completions for the year to June were down 18.6% to 1438, while the group's order book was down 45% on the previous year.

In a further sign of housing market woes, Kier said it had also stopped accepting part-exchange properties as a selling tool.

Nearly 70% of its business is in civil construction projects, which, Kier said, was in better shape than the housing arm. It currently boasts record order books, the firm said.

In a statement, Kier said: "We will run a leaner operation in the future with our focus shifting towards affordable housing and regeneration."

Meanwhile, mortgage rates continued to fall yesterday with the UK's biggest lender announcing it was cutting the cost of its deals for the second time in a week.

Halifax said it was reducing its two-year fixed-rate mortgages by 0.1% and its five-year fixed-rate ones by 0.15%.

The group said it was making the move to keep its pricing in line with the market after its competitors had cut their rates.