Kent-based housebuilder Bovis has reported plummeting profits in the toughest housing market it has known for years.

The squeeze on mortgage lending has taken its toll of housebuilders, with many big names like Persimmon, Taylor Wimpey and Barratt Developments announcing big job cuts.

Bovis, which has its head office in New Ash Green, recently laid off 400 employees and closed a regional office in what chief executive David Ritchie called "the toughest period of trading it has experienced in its time as a public company."

Bovis said it also reduced its housebuilding programme and was cutting back on new land purchases.

Mr Ritchie added: "The Group considers that the current difficult trading environment will continue for the foreseeable future with continued poor mortgage liquidity limiting housing market activity."

A 68 per cent drop in mortgage approvals, rising interest rates, in spite off falling trend in the Bank of England base rate, and a requirement for bigger deposits had hit first time buyers. As they were the first rung on the ladder, Bovis said it was a particularly damaging development.

Consumer sentiment was poor and prices were dropping as a result of reducing demand and falling confidence. Bovis said it was likely to take some time for these conditions to stabilise or improve.

The average private house price achieved was £196,700, four per cent lower than the same period in 2007. Bovis increased its building of affordable housing and the overall average house price fell 12 per cent to £167,600.

The group reported half-year profits of £11.7 million, down more than £46m on the same period a year ago (£58.4m). Sales were down 43 per cent from £259.9m to £149.3m. Bovis anounced a 5p dividend, well down on the 17.5p paid for the first half of 2007.

Housebuilder Taylor Wimpey, which has offices at Hildenborough, Kent,suffered a drop in profits of 96 per cent in the six months to June, it has announced.

The firm made a profit of £4.3 million, down from £119.8 million in the same period last year.

Chairman Norman Askew, said: "The first half of 2008 has been characterised by the very challenging trading conditions in the UK, US and Spain. The Board remains convinced of the fundamental value of the business over the medium and long term."