The chief executive of property portal Rightmove has warned that UK housebuilders are confronting their most difficult operating environment since the 2008 financial crisis, when new-build activity collapsed and took years to recover.

Johan Svanstrom, who leads the FTSE 250-listed firm, said on Friday that new home developments remain at "historically low levels due to continued softer build rates." Rightmove reported that its new homes business experienced "subdued" growth, driven by a six per cent decline in new-build developments compared with the same period a year earlier. The stagnation in new construction comes against the backdrop of Britain's long-standing housing shortage, with successive governments setting ambitious building targets that have consistently gone unmet.

"Developers are seeing conditions among the most difficult experienced since the global financial crisis and, as a result, new developments coming to market are at their lowest in over a decade," Svanstrom said.

Rightmove reported a two per cent increase in pre-tax profit to £149m for the six months ending June. The company's shares rose two per cent to 466p on Friday.

Taylor Wimpey Slashes Dividend Amid 'Prolonged Downturn'

Also on Friday, housebuilder Taylor Wimpey announced a reduced dividend and cautioned that the UK housing sector remains mired in a "prolonged market downturn" with no signs of easing.

The FTSE 250-listed builder said it is prioritising cash generation and margin control against a "backdrop of continuing market uncertainty." The announcement adds to a challenging period for the nation's housebuilders, which have grappled with rising construction costs, higher mortgage rates, and declining consumer confidence since the outbreak of the Iran war at the end of February.

Taylor Wimpey confirmed it will reduce its shareholder dividend from 7.5 per cent of net assets to four per cent. The company also narrowed its home completion target from a range of 10,600 to 11,000 down to between 10,600 and 10,800, reflecting weaker-than-expected sales during the first half of the year.

"The housing market downturn has proved more prolonged than anticipated, with affordability pressures continuing to affect demand and profitability expectations remaining lower than when the current distribution level was set," the company stated.

Housing Sector 'On Shaky Foundations'

Taylor Wimpey's private sales rate declined from 0.59 to 0.55 year on year, while its net order book fell nine per cent to £2m compared with the prior year.

The company expressed support for the government's "housing ambition" but urged Prime Minister Andy Burnham to implement measures aimed at stimulating demand for new housing.

"Without targeted demand support and viability measures to unlock delivery, weaker demand, rising costs and limited affordable housing funding risks reducing sector output and UK economic growth," the firm told investors.

Shares in Taylor Wimpey dropped more than four per cent to 79p in early trading. Russ Mould, investment director at AJ Bell, described the update as the "latest reminder that this sector is on shaky foundations."

On Thursday, London-based builders' merchant Lord's Group separately warned that the construction industry is being squeezed by rising employment costs and falling consumer confidence. The convergence of warnings from across the supply chain — from portals to builders to merchants — underscores the breadth of the sectoral slowdown.