Bovis, the FTSE 250 builder, brought fresh misery to the housing market today as it reported that customer orders for its new-build homes have all but dried up and average sales prices have stagnated.

The builder, led by chief executive Malcolm Harris, said just 2,282 properties had been reserved during the six months to the end of June — a meagre nine houses more than at the same point last year.

Average selling prices for a Bovis home rose by less than inflation to £189,000, only £300 higher than the £188,700 price at the halfway stage last year, the firm said.

"These figures reflect a recent slowdown in both visitor rates and in reservation rates," Bovis said.

Bovis's property market dampener followers a string of recent surveys, including from Halifax and Nationwide, highlighting that prices have come off the boil over the past three months.

Five successive interest rate rises since August have hit household budgets and made both buyers and sellers more wary.

Bovis said that, while it was well positioned to grow, any volume increases over next year would depend on "consumer confidence over the key summer and autumn selling period".

Shares dropped 30.5p to 890p in the opening minutes of trading, a fall of 3.3 per cent. And rival housebuilders all fell in sympathy.

Chris Millington at Bridgewell described today's trading update as "slightly disappointing" given its suggestion of flat profits. This does not bode well for the 10 per cent growth in pre-tax profits that are forecast for both this year and next.

Mr Millington noted the contrast between today's update from Bovis and recent more bullish comments from Persimmon and Redrow. He said that he anticipated slashing his forecast estimates by between 7 per cent and 10 per cent.

Bovis said that profits had been "good" and in line with its internal projections despite recent rate rises.

It completed 1,256 homes during the first half, some six properties fewer than at the same point in 2006. In spite of the price freeze the average price per square foot rose 4 per cent after Bovis — like other new home-builders — shrank the average size of a house.

It said that it had sold land worth £20 million, double last year, leaving it with a bank of about 11,600 plots. This is down from 12,395 plots at this time last year, and reflected the strength of demand and prices for land, Bovis said.

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