Confidence among small and medium-sized housebuilders has deteriorated sharply in the past three months, according to survey findings.

The second quarterly HBF and Quantum Development Finance sentiment survey shows builders’ expectations for land purchasing, housing starts and housing market conditions have all weakened since the previous findings published in March.

The survey found nearly half of SME developers expect to reduce land purchasing over the next three months, up from 27% in the first quarter. The percentage saying they expect to increase activity fell from 32% to 18% over the same period.