Shares in Berkeley Group edged higher early on Tuesday morning (6 September), after the British housebuilder reiterated its profit guidance until 2018 as it reported the market had stabilised after the Brexit vote turmoil.

The London-focused firm said reservations suffered a severe drop in June in the wake of Britain's European Union referendum but throughout August, traditionally a very quiet month for the sector, the market returned to relative stability.

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"After an hiatus either side of the referendum, the market in August [...] has returned to the relative levels reported for the first five months of the year," it said in a statement.

"[Reservations were] approximately 20% down on August 2015, reflecting the lower levels of available product, as well as the broader market conditions."

Berkeley added its profit guidance for the next two years would remain unchanged and it expects to record a pre-tax profit of £2bn ($2.7bn) by the end of April.

The group, which dropped out of the FTSE 100 last week, explained it had adopted a "selective" approach to purchase land after the referendum and had purchased just two sites in the months since the vote.

However, it added house prices had remained stable even in the aftermath of the referendum.

"Pricing has remained resilient and above business plan levels with reservation cancellation rates at normal levels, following a temporary and expected increase after the UK referendum result," the company said.

Berkeley shares have fallen 18% since the vote on 23 June but the group said it would pay out a dividend of £1 a share next week and planned to pay out an additional £10 a share over the period to September 2021.

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