Taylor Wimpey has not yet reached a deal to restructure its debt but expects an agreement by the end of the year, the housebuilder said as it reported a collapse in interim profits.

In a trading statement, the struggling group scotched rumours that it had already convinced lenders to amend key covenants relating to its £1.7bn net debt. The shares fell 7% to 48.25p, reversing gains made on Tuesday, because of speculation about an agreement.

Taylor Wimpey is selling less than half a house a week on each of its sites despite offering incentives with its new homes, it emerged yesterday.

Financial Times, The Times, Daily Telegraph, The Independent