The Bank said builders were trying to improve their cashflow by letting out completed properties that would not sell in the current conditions.

It added that they were also offering shared equity schemes to prospective buyers and increasing sales to housing associations.

Work has ceased on many uncompleted properties because of the absence of confirmed buyers, according to its latest Agents' summary of business conditions report.

The volume of housebuilding has continued to contract, and new housing starts are at very low levels.

The findings come as data from the Council of Mortgage Lenders showed that lending fell to a three-year low in August, in the latest sign of dwindling demand for property buying.