Taylor Wimpey, one of the UK's largest housebuilders, has reported a downturn in market conditions as first time buyers and investors are facing difficulties with the restricted availability of mortgages.

The company reported it sales rates have remained significantly below those of the equivalent period of 2007 on a pro forma basis, with higher levels of cancellations being experienced.

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In the report Taylor Wimpey stated: "We anticipate that the current subdued conditions will continue, with interest rates and mortgage availability being key determinants of customer confidence. Our focus remains on preserving value through maintaining a steady, but reduced, sales rate and controlling land and work in progress spend tightly. We are continuing to reduce costs, the benefits of which will come through during the second half of the year."

(CD/JM)