The Sheffield-based developer said profit before tax for 2026 would miss current forecasts of £20m as subdued transaction volumes and weaker market confidence continued to weigh on trading.

The biggest setback came at land promotion arm Hallam Land, where plot sales more than halved to 556 in the first six months from 1,222 a year earlier as house builders slowed land buying and increasingly sought deferred payment terms.

Despite the slowdown, the business continued to build its long-term pipeline, ending June with planning consent for 8,974 plots and a further 21,361 awaiting determination. It remains on track to submit planning applications for 10,000 plots this year.

House building joint venture Stonebridge Homes is now expected to make an operating loss for the full year, hit by higher mortgage rates, planning delays and around 5% build cost inflation.

Property development arm HBD continued to perform more strongly, reporting robust occupier demand across its industrial and logistics portfolio.

Its Origin joint venture schemes are now 75% let or under offer, up from just 9% at the start of the year.

Earlier this month, HBD also started work on the £95m Golden Valley innovation district in Cheltenham, including the 160,000 sq ft IDEA building, which is already 68% let or under offer.

Net debt increased to £133m at the end of June from £108m at the year end. Henry Boot has already agreed temporary amendments to its banking covenants with lenders and said discussions were continuing over full-year covenant requirements.

The group expects net debt to reduce by the year end as transactions complete.