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Housebuilder Taylor Wimpey has posted a £19.5 million pre-tax loss caused by US writedowns in 2007.

For the year ending December 31st 2007, completions in the US were down to 6,740 from 8,839 in 2006, while the average house selling price plunged from £202,000 in 2006, to £175,000 in 2007.

Profit before exceptional items, interest and tax was £62.4 million compared to £336.8 million in 2006 for the US arm.

Taylor Wimpey said it wrote off £283.4 million over 2007, as the value of its land fell.

The group, created through the merger of Taylor Woodrow and George Wimpey in July 2007, said it was postponing building on high-quality land which is currently undervalued until prices stabilise.

Chief executive Pete Redfern said: "In North America, following the merger, we are better positioned to navigate the ongoing challenges.

"Whilst it remains too early to make significant land purchases, we are well placed to take advantage of any high quality land acquisition opportunities that arise as a result of the prolonged market weakness."

In the UK, Taylor Wimpey also reported fewer completions, 20,690 compared to 21,910 last year, although the average selling price increased from £186,000 to £188,000.

Pre-tax profit for the UK arm increased to £608.5 million from £533 million in 2006 despite a drop in revenue, as Taylor Wimpey improved its margins to 15.2 per cent from 12.8 per cent.

The board proposed a full-year dividend of 15.75 pence a share, an increase of one pence, or 6.8 per cent.

Shares in the company initially fell 4.5 per cent when the market opened, but recovered in morning trading to £1.69 at 10:00 GMT, up 2.74 per cent from the previous close.