St Modwen dives £20m into the red

It made first-half losses of £20 million, having made a profit of £65.1 million in the same period a year ago.

St Modwen was forced to write down the value of its assets by £31.8 million.

Chief executive Bill Oliver said it was "the most difficult period for the property industry since 1990".

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