Pre-tax profits were up 1% to £585.1m (2006: £582.1m) on turnover of just over £3 billion.

However, it was notable that the average selling price for the year of £186,558 was up just 1% on the previous year, suggesting a sharp fall in prices at the backend of the year.

John White, group chairman said:

We came into 2008 with a forward sales order book of £603m. Since then reservations have been lower than the same strong period of 2007. Visitor levels have improved each week since the beginning of the year but conversion to sales ratios have remained challenging.

Understandably, potential purchasers are currently taking longer to make decisions about the timing of their house purchase. There remains an underlying demand and desire for new homes but we have been experiencing a period of a "wait and see" approach.

"We are confident that the underlying supply and demand fundamentals for the house building industry will once again produce an upturn in market conditions. As planned, we continue to increase the number of partnership homes we are building in line with the Government's agenda.