Bellway reports that trading has improved in the early part of this year, compared with the 40% slump in home reservations seen last year, as property purchasers adjust to a new normal for mortgage rates.

The housebuilder has seen profits dip by 2.1%, partly due to what CEO Jason Honeyman called “challenging operating and trading conditions in the period”.

Bellway’s reservation rate was down by 31.7%, with the rate for private homes falling even faster, at 43.8%, caused in large part by the “elevated mortgage rates” immediately after Kwasi Kwarteng’s infamous mini-Budget, as well as the end of help-to-buy schemes.

However, Honeyman reports that property sales have improved in recent weeks.

“Trading is quite positive really, which is surprising in parts,” he said. “Since the start of the new year, there’s been a week-on-week improvement in sales, not only in London but across the UK. Customers are adapting to new mortgage rates which are around the 4% mark.”

He added: “There’s probably a gap in mortgage funding for first time buyers, but in the main, trading is certainly improving.”

Group finance director Keith Adey said the company was seeing more stability around mortgage rates – albeit at higher levels than in the recent past.

He commented: “Mortgage rates are beginning to come down and people are beginning to adjust to a reality where rates aren’t going to be sub-2%.”