Britain's biggest housebuilder Taylor Wimpey has been unable to secure a deal with potential investors to give more money for further funding.

The firm announced it was in discussions with shareholders to raise capital but said that it hasn't been able to agree on a satisfactory deal.

The company also confirmed it was axing 900 jobs and closing 13 of its 39 regional offices.


A spokesperson said: "Our major markets are experiencing a significant downturn, characterised by significantly lower weekly sales rates and lower average selling prices than in recent years. We expect that the UK housing market will remain weak at least through 2008 and we do not anticipate any recovery in the short-term."

Orders dropped by 45% in the first half as mortgage approvals dropped to the lowest in at least nine years. Shares in Barrett Developments Plc and Redrow Plc lost more than 30%.

Taylor Wimpey said that if it is unable to raise new capital it may breach it banking covenants next year.

Taylor Wimpey currently holds £1.7 billion worth of debt which it expects to fall to £1.4 billion by December.

(CD/JM)