McInerney Homes, developer of Whitton View in Rothbury, is only building houses that are already sold, Rothbury Parish Council heard last week.

Coun Alan Fendley said: "The current Addycombe development is having to face the realities of the market."

After a meeting with the site foreman at the development, he said: "They are under a lot of pressure to only complete properties that are sold."

A McInerney spokeswoman confirmed the situation. She said: "The site is currently half-completed, and two thirds will be completed by the year end.

"We are not starting production on new units unless they are sold."

Job cuts are also being made at developments because of a fall in sales. At Whitton View, contractors have had their employment terminated and only some have been re-employed on a short-term contract.

A statement from McInerney said: "As a consequence of the global credit crunch and cautious consumer sentiment, McInerney Holdings plc is currently facing challenging conditions in the UK.

"In particular, the supply of new mortgage funding for potential home purchasers has been significantly curtailed and this has impacted on demand for new homes and therefore construction output.

"To reflect the reduced scale of output in the UK, the group has undertaken a range of cost-saving measures. Regrettably, these measures also include those people employed on sites in the North East area and reflect the status of operations at individual sites.

"These measures will place the group in a better trading position to be able to maximise opportunities when the positive fundamental dynamic of the market returns."

Elsewhere, the David Barlow site at Rennington is now complete as are the Grainger Homes developments at Powburn and Beadnell, with work at Amble yet to start.