Housebuilder George Wimpey today said sales volumes in 2004 would fall short of last year after the company felt the impact of a slower market.

Wimpey, which also runs Laing Homes, added that five interest rate rises and media speculation about prices had also left its mark on its order book.

Despite the tougher market, Wimpey said it remained on course to meet City forecasts for record profits in the region of £430 million and £440 million - compared with £378 million last time.

It also pointed out that the long-term fundamentals supporting the UK market continued to be good with rates set to stay low by historic standards.

Today's trading statement came a day after shares in York-based rival Persimmon rose 3% on the back of an update showing forward sales at the same level as last year's "very strong" order book of £550 million.

Shares in Wimpey - one of the UK's biggest householders - fell 2% as it said lower selling rates in the second half of the year had "inevitably had some impact on both second half volumes and the order book for 2005".

As a result, it said it expected total UK volumes to be "somewhat below prior year levels. It sold around 12,900 properties in 2003.

The company added that average selling prices at the George Wimpey division in the second half were likely to be similar to those achieved in the first half - resulting in an overall increase of about 9% for the full year.

Laing Homes, which operates at the upper end of the property market, should achieve average prices similar to those reported for 2003.

Wimpey added that its total UK order book at the end of 2004 was expected to be just over £540 million, representing about 20% of the coming year's target.

By value, the George Wimpey private development order book - making up the bulk of business for the division - is expected to be 15% lower while the Laing Homes order book will be a third lower than the "exceptionally high levels" of a year ago.