Housebuilder Persimmon has reported that its sales since the start of the year have slumped by 24%, and it expects the market to become even more challenging.

"Over the last three weeks the unprecedented tightening in the mortgage market has caused a further deterioration of the housing market leading to lower sales volumes and increased cancellation rates," it said.

The group also reported an 18% drop in volumes since 1 January and has postponed the start of scheduled new sites until the mortgage market improves.

At the end of March, borrowings were £1.03bn. Persimmon said it is focusing on management of cash flows within the business to maintain a strong balance sheet.