Galliford Try and Redrow warn investors over downturn

Galliford Try and Redrow have both warned investors that turbulence in the housing market has hit their businesses.

In a statement to investors this morning, Galliford said that its full-year profit was likely to be at least £60m, down from the £76.6m predicted by analysts.

"Markets for the group's housebuilding division have been difficult throughout the spring selling season. In recent weeks they have shown further sharp deterioration as the availability of mortgage finance for homebuyers reduced," it said.

But it added that its construction, affordable housing and regeneration businesses were performing strongly across the public, regulated and private sectors.

Meanwhile Redrow warned that it was experiencing a "marked increased" in customer cancellation rates since Easter. Until recently, cancellation rates had been running at around 20%.