One of Britain’s biggest housebuilders is planning widespread redundancies and the closure of two regional divisions as it battles a slump in demand from new buyers.

Bellway is consulting on the proposals, which would involve the closure of its London partnerships and South Midlands divisions.

The move could see 90 employees from the company’s 3,000-strong workforce lose their jobs.

“In response to current market conditions which have caused a slowdown in the sales market and a reduced output for house building, we have today announced proposals to make some structural changes across our business,” the company said in a statement.

“This includes the potential closure of two of our operating divisions, with sites being transferred to other divisions, a reduction in capacity in a third division and a limited number of role reductions across the business.

“A process of consulting with those potentially impacted has begun today.”

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It is the latest sign of a slump in the housebuilding sector, which is grappling with high interest rates and a cost of living squeeze that is dampening demand.

The end of the government’s Help to Buy scheme in England is also weighing on the sector.

In a company update made in June, Bellway revealed its reservation rate for the four months to June fell by almost a quarter to 190 homes, compared to the same period last year.

The company said the value of its order book had fallen from £2.4bn to £1.7bn.

It came two months after Taylor Wimpey announced that it was planning to cut jobs in order to find savings of £20m a year.

Meanwhile, Barratt announced in July that it would build 20% fewer homes in 2024, while Berkeley said its annual sales were expected to fall by a fifth.

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