Home buyers have been left in uncertainty after a debt-laden residential developer called in external administrators to keep the firm afloat.

Bathla Group cited a “perfect storm” including a property market downturn and rising construction costs in announcing on Tuesday it had called in insolvency specialists Teneo to restructure the business.

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The developer, which has thousands of homes under development in sydney’s west, is being closely watched by the state’s construction regulator.

A spokesperson for the NSW Building Commission told AAP on Tuesday it was closely monitoring the situation.

“Building Commission NSW is aware the companies trading as Bathla Group have been placed into voluntary external administration,” it said.