Residential building land value drops 20pc

Residential building land, one of the core assets of most housebuilders, plummeted in value by 20pc in the first six months of the year and could fall by up to 50pc before the current slump is over.

Research by estate agent Savills shows the value of brownfield sites, down 19.8pc, and greenfield sites, down 22.5pc, fell by roughly four times the rate of the housing market as investors deserted the sector.

With development land a key part of most housebuilders' asset bases, the valuations will be a major concern for the struggling sector.

Record numbers of homeowners are letting out properties after failing to sell them, according to the Royal Institution of Chartered Surveyors. New instructions to let houses and flats increased at the fastest ever pace - and the flood of properties is expected to depress rental levels in the coming year. However, demand is rising, with the biggest increase coming from families looking for houses.

Renting in London is five times more expensive than the country’s cheapest locations, with Westminster the most expensive borough in the country, research from the Deposit Protection Service found. The research measured the average deposit demanded by landlords and found the 10 most expensive boroughs are all in the South, while all but the one of the cheapest areas to rent is in the North.