Barratt Developments, one of Britain's largest housebuilders, has reported housing reservations have declined by a third this year as buyers struggle to get mortgages.

The group said they were only starting new projects where it is clearly visible houses are in high demand.

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The company said: "Current market conditions are impacting to varying degrees on regional performance, with the Midlands and West worst affected, whilst the London and South East markets are proving to be relatively more resilient.

"The group continues to benefit from a broad geographic and product mix and a targeted exposure to the London market."

The slowdown in sales has seen Barratt's order book drop from £2.1bn last year, to a current £1.56bn.

(CD/JM)