One of the UK's largest housebuilder Persimmon has reported a 64 percent fall in first-half pretax profit.

However, it also said that the dire state of the market did not appear to be getting any worse.

The York based builder's pre-tax profits in the six months to eun-June were £101million,compared to £281million last year. The company is to cut its dividend.

Home sales were down 31 percent year-on-year but the company said sales volumes since April have not deteriorated any further.

The company has already cut 1,100 jobs and is cautious in its outlook as prices and margins remained under pressure in an industry trying to dispose of stocks of houses. It said that activity levels in the autumn selling season would give a clearer picture for 2009.