Housebuilder Persimmon has posted a huge drop in profits as figures show the number of new homes being built has fallen 19 per cent.

Persimmon's figures are expected to lead a raft of poor results for housebuilders as the sector continues to take a battering.

Pre-tax profits for the six months to June 30 tumbled 64 per cent to £100.9 million. It has already cut 2,000 jobs to cope with the downturn in the market.

The company warned: "The current economic conditions, the uncertainties surrounding the general financial markets and mortgage availability will be defining factors in the return to a more normal housing market.

"Until we see an improvement in respect of these factors it is difficult to predict the short term future with confidence."

The number of new homes being built in England slumped by 19 per cent during the past year, Government figures show.

A total of 33,400 new properties were started during the three months to the end of June, 2 per cent more than during the previous quarter, but 19 per cent down on the same period of 2007, according to Communities and Local Government.

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