Housebuilder Bovis Homes called for "decisive action" on interest rates today after revealing a 20% drop in sales reservations so far this year.
Without cheaper borrowing costs and more normal conditions in the mortgage market, Bovis said volumes in 2008 were likely to be well down on last year.
It added to the pain of shareholders by revealing a fall in profits for 2007, with the surplus of £123.6 million down on the £132 million seen in 2006. Shares fell 7% today.
Bovis said: "2007 was a challenging year for the industry following several interest rate increases, allied with a reduction in availability of funding, particularly for first-time buyers."
The company described the current market position as weak and said sales reservations to March 7 stood at 1,262, compared to 1,582 for the same point the previous year.
Chief executive Malcolm Harris said: "Our performance through the spring period remains critical in establishing the likely volume outcome for the current year.
"For the year as a whole, unless decisive action is taken now to reduce interest rates and more normal conditions return to the mortgage market, it is likely that volumes will be well below those achieved in 2007."
