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Housebuilder Berkeley said current performance is in line with the board's expectations for both the half-year and full-year but added that sales so far have been 50% lower than average levels.

The group also said it has agreed to restructure the final £3 a share, which was due to be returned under a scheme of arrangement. It will be returned as a series of dividend payments and opportunistic share buy-backs, as opposed to a single B share payment, with the target end-date deferred from January 2011 to January 2014.

"This provides Berkeley with the flexibility to take advantage of the opportunities that emerge in times of weaker market conditions," it said.

Since the beginning of its current financial year, Berkeley has experienced sales levels approximately 50% below the historical average. "This is a level that, with the benefit of the strong opening forward sales position, will enable the group to meet its strategic objectives," it said.

Berkeley said it is confident of maintaining operating margins within its historic range through efficiency measures and adding value to its sites through new planning consents.

"As a result, the performance of the group is in line with the board's expectations for both the six months ending 31st October 2008, the results for which will be announced on 5th December 2008, and the full year ending 30th April 2009," it added.

Berkeley welcomed the Government's initiative for first time buyers but said for the housing market to get back to normal levels, liquidity to the mortgage market needs to return along with the return of the feel-good factor.

"In the meantime, Berkeley is well placed to take advantage of prevailing market conditions," it added.