Housebuilder Bovis Homes has called for "decisive action" on interest rates after revealing a 20% drop in sales reservations since the beginning of this year.

The company revealed a fall in profits for 2007, with the surplus of £123.6 million down on the £132 million seen in 2006.

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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."

(CD)