"In light of current market conditions we have not been able to conclude a satisfactory transaction," it said.

"We will continue to evaluate options to secure that value for our shareholders," it added.

The group also announced the departure of finance director Peter Johnson and said that there will be no interim dividend.

In other cost-cutting plans, Taylor will close a third of its 39 regional offices and reduce staffing levels across the business, with the loss of about 900 jobs.

The company does do not anticipate any recovery in the UK housing market in the short term. Its order book was 33% lower by value at 29 June than at the comparable period in 2007.