Britain's second largest housebuilder Persimmon has reported a £780 million pre-tax loss for 2008, however the company has renegotiated the terms of its borrowing arrangements.

The York based firm has secured an extra £322 million of finance until 31 March 2012, however the cost of its borrowing has increased from around 2.8% to 6.4%.

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Persimmon described it as "the most challenging period encountered in the housing market in recent history".

The housbuilder admitted that it has been a difficult year but it has taken decisive steps to refocus the business accordingly.

There will be no dividend payments made for 2008 or 2009.

(CD/JM)