Persimmon, one of Britain’s biggest housebuilders, has announced it will not pay a final dividend for 2008 and warned of “challenging” times ahead, in the latest sign of the deepening decline in the industry.

In a trading update released on Thursday morning, looking ahead to its full-year results to be reported in March, Persimmon said that because of “the restricted credit conditions currently experienced”, it would “continue to focus on conserving cash.”