U.K. Homebuilders Shut Construction Sites After Virus Lockdown

(Bloomberg) --

Some of the U.K.’s biggest homebuilders are closing construction sites after the government banned all unnecessary movement of people to slow the spread of the deadly coronavirus.

Taylor Wimpey Plc, Barratt Developments Plc and Galliard Homes Ltd. said they’ll begin closing all building sites on Tuesday after Prime Minister Boris Johnson’s announcement of the most dramatic and widespread restrictions on the movement of people the U.K. has faced in peacetime.

The Construction Industry Council is seeking “much needed clarity” from the government on the status of building sites under the measures, which will remain in place for at least three weeks, CIC Chief Executive Officer Graham Watts said in a series of tweets. Some sites cannot be closed, such as renovations in the health care sector to create more capacity for treating coronavirus patients and work on other vital infrastructure, he said.

Under Johnson’s ban, hotels, shops selling non-essential items, playgrounds, libraries and places of worship will all be closed. People will be allowed out of their homes only to buy essentials, take one form of exercise a day, travel to work if it can’t be avoided, for medical care, or to help a vulnerable person. Police will break up gatherings and have the power to fine individuals. Cabinet Office Minister Michael Gove said on Tuesday that stricter rules could be imposed if necessary.

Taylor Wimpey also said it’s scrapping a planned dividend payment in order to maintain its cash reserves and is putting land purchases on hold. Crest Nicholson Holdings Plc and Redrow Plc previously announced dividend cancellations.

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