In a trading update for the first third of the financial year the housing giant said it is still on track to make a pre-tax profit of at least £518m this year.

Berkeley said: “The gradual easing of lock-down restrictions has been accompanied by a gradual firming of the London market as anticipated. Outside London, the market has remained robust. 

“As a consequence, underlying reservations at this stage in the financial year are in line with those achieved in the two years prior to the pandemic.

“Sales pricing has remained above business plan levels, which is offsetting building materials cost inflation, and cancellations have been at normal rates.

“While the sales market has been resilient, the operating environment remains challenging. 

“As reported in the wider market, and in line with our year-end results update, we have continued to experience inflationary pressure in build costs during this period, principally through materials, and we are mindful of ongoing issues in the supply chain and labour market resulting from Brexit and the pandemic.”