Housebuilder Bellway has said the Midlands, Yorkshire and the North West were being "particularly hard hit" in the housing market slowdown.
The group said overall reservations were down 31% on a year earlier and that it had lowered its estimate for the fall in number of homes sold this year to between 10% and 15%, compared with 5% to 10% seen earlier this year.
In line with other housebuilders, Newcastle-based Bellway said the normal spring selling surge had failed to materialise. It reported a 9% fall in reservations in March, but has seen conditions deteriorate since then.
The company added: "Whilst conditions vary from region to region, the Midlands, Yorkshire and the North West have been particularly hard hit.
"Thames Gateway and Scotland have been resilient but the restricted mortgage supply, combined with a sapping of consumer confidence, is leading to further market weakness."
The company's total order book currently stands at £706 million, down from £845 million a year earlier but assisted by increasing exposure to social housing, an area which should see output increase on a year-on-year basis.
Bellway said it expected the use of incentives to erode its operating margin by 1% to 1.5% when compared with the figure last year of 18.7%. Work in progress continues to be reviewed in an effort to give the company a leaner cost base.
It added: "New land opportunities are still being procured but only on a highly selective basis and with the emphasis on housing rather than flatted schemes."
The company recently reported pre-tax profits of £96.9 million in the six months to the end of January, against £100.8 million the previous year.
