The firm reported an interim loss of £20m after a net revaluation write-down of £31.8m versus a profit of £65.1m a year ago.

The book value of the company's residential sites is now just £14m above historical cost.

"What was not expected, either by us or the market generally, was the pace and severity of decline in the residential market, which has yet to find a stable level," said the group.

"This means that, for residential land, there is currently no genuine market, as the major housebuilders are unwilling to invest in land until they can see the way ahead more clearly."

As a result, St Modwen said it has decided not to attempt to sell any of its residential land until the market has stabilised.

It expects some further drift in yields within the commercial sector and a worsening climate for occupiers, which will slow demand for new space.