Housebuilder Barratt Developments has announced staggering losses of £592.4 million in the six months to 31 December, compared with a £196.4 million profit at the same time last year.

Most of the losses came from a £494.9 million charge to reflect impairment changes on its land bank.

Group revenue tumbled to £1,261.9m from £1,652.8m at the interim stage in 2007.

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The company's board has decided not to pay an interim dividend.

Mark Clare, Group Chief Executive of Barratt Developments commented: "This remains an intensely difficult market with little forward visibility. During the last six months we have driven sales, removed costs and cut our debt levels. We've reduced our prices and we're now seeing some signs of increased activity levels in terms of visitor numbers and sales.

"However, there will be no recovery in the housing market until the availability of mortgage finance improves. So, we are continuing to offer customers every possible assistance to move house, ranging from shared equity products to part exchange on their current home."

(CD/JM)