The group announced yesterday in a trading statement it is to close four of five offices in its residential division with the loss of 375 jobs.

Kier will reduce the workforce in its housing division by 60 per cent as a result.

The group said a tough housing market meant its order book of exchanged contracts and reservations was down 45 per cent for the 12 months to the end of June compared to a year ago.

Sales were down almost 19 per cent on the previous year to 1,438.

About 100 jobs have already gone at offices in Lincolnshire, and the remaining 275 will be shed in Cambridgeshire, Hertforshire and Glasgow.

This brings the total number of recorded job losses in the housebuilding sector in recent months to more than 5,000.

York-based Persimmon announced earlier this month it is to cut 2,000 of its 5,000-strong workforce.

Barratt Developments said last week it was cutting 1,200 jobs, closing or merging offices in Sheffield and Leeds, as it reported steep declines in sales and forward orders.

Kier said it has also stopped accepting part-exchange properties as a selling tool. The Bedfordshire based group said it limited land spending in the last quarter of the year, and "will continue this approach until the outlook for the housing market becomes clearer".

The group, which has major maintenance programmes on public housing in Sheffield, Hull and Leeds, as well as projects at York Hospital and Hull Royal Infirmary, said it will instead focus on public contracts.

"We will run a smaller, leaner operation in the future with our focus shifting towards affordable housing and regeneration," it added.

Kier will announce its results on September 18.