The group also only saw  £200,000 worth of operating profit, compared to the £54.7m seen in FY22.

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Watkin Jones said the low operating profit was due to low levels of forward sale activity, togetjer with a £4.6m book loss on the sale of three PRS assets and £35m provision for building safety remedial works. 

Despite this, the group ended the year with around £500m of contractually secure forward sold revenue. 

Alex Pease, CEO at Watkin Jones, said: "Significant cost inflation and volatility in real estate funding markets meant that FY23 represented a period of unprecedented challenge for the business. 

“However, I am pleased that against this backdrop the group demonstrated resilience and agility, taking a number of important actions operationally.

“Whilst funding conditions remain difficult, the outlook is gradually improving and the strong asset performance in PBSA and BTR sectors gives me confidence in the longer-term market recovery and return to growth.

“In the near term, we remain focussed on driving improvements to the productivity and efficiency of the business, as well as looking at opportunities to extract more value from our sector expertise and end-to-end capabilities.

“Watkin Jones continues to have a market-leading team and offering to the residential for rent sectors and we are taking the right steps to ensure we are well placed to capitalise on this, as conditions improve."