HOUSEBUILDER Berkeley Group expects full year profits to come in at the top end of expectations after signalling that the London housing market has stabilised following a Brexit shock.

The company, which is focused on London and the South East, said that while reservations in the seven months since the referendum are down 16 per cent, January and February were ahead of last year.

In a trading update, the group said: "The housing market in London and the South East has now stabilised.

Loading article content

"Inquiry levels remain robust, cancellation rates are at normal levels and pricing continues to be resilient and above business plan levels."

Berkeley added that it is in a "strong position" and remains on track to deliver at least £3 billion of pre-tax profit over the five years to April 2021.

Forward sales are expected to be "in excess" of £2.6 billion by April.