Bovis Homes issued a profit warning on Tuesday as it said reservations were down 30 per cent year-on-year since January.

The housebuilder followed its peers Persimmon and Taylor Wimpey in saying the market had worsened in recent weeks and earnings were under threat. Mortgage approvals in Britain have plummeted in recent months due to the impact of the credit crunch on providers’ willingness to lend, higher interest rates, and falling consumer confidence.