The Nottingham house builder, which is part of the Artisan Group, said lack of mortgage availability had severely impacted the market.

As a result Rippon is targeting homes owners that are trading down with a refocused product range of bungalows and four bedroom homes.

Chairman Michael Stevens said: “We have been very successful in marketing bungalows and generating a good return from these products.  We have also been seeking to vary planning permission on existing sites to improve the product mix.

“More bungalow sales will follow in 2010,” he forecast.

Bungalows have not been popular with developers for a while because of the relatively high build cost and less efficient use of land.

But Rippon Homes said it had successfully found sites suitable for bungalows, which have proved popular with customers.

The house builder’s total land bank, with detailed planning permission stands at 239.

The improvements seen from bungalow building came after the year end, which saw Rippon Homes managed to reduce operating losses to £900,000 from £1.1m last time on turnover slightly down at £7.6m.

Reporting annual results for parent company Artisan to 30 June, Stevens warned: “The planning system has gone from bad to worse at present.

“The reduction in staff numbers in planning departments and the central government’s cancellation of planning number targets has led to a hiatus in planning approvals, causing in some regions significant delay in obtaining planning for new schemes.

He added: This in our view is likely to lead to the next pricing bubble when the market returns, as the demand demographics suggest customer demand for product will not abate.”