British homebuilder Taylor Wimpey PLC’s shares fell by 12 percent Wednesday morning, after the company reported a huge first-half loss resulting from 1.51 billion pounds ($2.79 billion) worth of write-downs to the value of its assets.

The company, Britain’s largest homebuilder by volume, posted a 1.42 billion pounds ($2.62 billion) loss for the six months to June 30, compared to a 22.7 million pounds profit in the first half of last year.

The loss arose from two major hits to the value of its assets. The London-based company was forced to write down 690 million pounds ($1.27 billion) of its land holdings across Britain, North America and Spain, where market conditions have become increasingly difficult as the credit crunch continues because of the lack of available mortgages. The write-down reflects the lower price that the company is likely to receive for home sales on that land.

At the same time, Taylor Wimpey _ which was formed by the 4.3 billion pound merger of Taylor Woodrow PLC and George Wimpey PLC in July 2007 _ was forced to write down 816 million pounds ($1.5 billion) of goodwill and intangible assets, including the cost of losing the George Wimpey brand.

As a result of the merger, which increased the company’s total home sales despite the deteriorating housing market, revenue in the first half rose by 35 percent to 1.89 billion pounds ($3.49 billion) from 1.4 billion pounds.

To reduce costs, the company already has announced plans to close a third of its British offices by the end of September, slash 900 jobs and cancel the half-year dividend payment.

“Whilst conditions are likely to remain tough in both the UK and the U.S. in the short term, we are maintaining momentum in the UK and we have seen pockets of stabilization in the U.S.,” said chief executive Pete Redfern.

On Tuesday, British homebuilder Bovis Homes Group PLC reported an 83 percent fall in first-half profit. Last week, Persimmon PLC, Britain’s biggest homebuilder by market value, posted an 87 percent drop in first-half profit.

Taylor Wimpey shares fell 12 percent to 46 pence ($0.84) in early trading on the London Stock Exchange.