The slowdown in the US housing market has caused housebuilder George Wimpey to warn that its completions in America will fall below last year’s level.

In a trading statement this week Wimpey said the market had weakened over summer. Net prices had dropped 10%, sales rates had fallen and it has had to cancel some land deals. The US accounts for about 30% of Wimpey’s sales volume.

However, the stable UK business offset the tougher US market. Sales volume in the UK is expected to beat last year’s figure.

Wimpey’s shares fell initially, but later recovered to trade 3% higher at 528p per share.

Peter Redfern, Wimpey’s chief executive, said the company had improved its margins and its land acquisition in the UK.

This is in contrast to last year when operating profit at its UK business fell 32% to £278m.

In August, UK Wimpey posted a 25% increase in pre-tax profit to £152m for six months to 2 July.