TW expects to write down the value of the land bank and work-in-progress in the UK by approximately £550m, in the US by £70m and in Spain by £40m.It said the UK market had entered a "significant downturn".

The company said it has started talks with shareholders and other institutions about raising additional financing, which would most likely be via a placing and open offer.

The builder added it had also arranged a change in its banking covenants that involves the suspension of the covenant based on net interest in relation to EBITA to one based on operating cash flow. This amendment is conditional on the company raising additional equity.