(Bloomberg) -- Taylor Wimpey Plc is the latest British homebuilder to flash warning signs about the country’s housing market.

The country’s fourth-largest housebuilder saw its rate of net sales per week fall to 0.51 in the second half of the year, compared with 0.91 in the same period in 2021, according to a statement Wednesday. The company’s cancellation rate for its homes rose to 24% in the same period from 14% a year earlier.

“Higher mortgage rates will contribute to the wider cost of living challenges affecting our customers,” the company said in a statement. “Despite the more challenging short term conditions, we remain confident in the long-term sector fundamentals,” the firm added. 

Taylor Wimpey is the latest homebuilder to issue warnings about Britain’s housing market, which faces severe disruption as it adapts to higher borrowing costs and the threat of declining house prices. Mortgage rates soared above 6% in the aftermath of then-Prime Minister Liz Truss’s “mini-budget” on Sept. 23. While rates have since stabilized, they remain close to peaks last seen during the 2008 financial crisis.

That’s having a knock-on effect on Britain’s homebuilders, which have hinted at tougher times ahead.

Persimmon Plc, the UK’s largest listed housebuilder, said on Tuesday it was ending a decade of bumper payouts to shareholders after sales fell and amid a darkening outlook for the nation’s property market. Barratt Developments Plc and Bellway Plc also reported drops in their home reservations last month, with the latter warning that pent-up demand for UK homes triggered by the pandemic is beginning to fade.

Still, UK homebuilders can take some comfort from a Bloomberg survey published Tuesday which shows prospective homeowners would consider settling for a cheaper property or making sacrifices elsewhere to secure a purchase. More than half of Britons planning to buy a home in the next two years said their home-buying plans had either been brought forward or remained unchanged, the survey shows.

Despite uncertainty in Britain’s housing market, Taylor Wimpey says it remains on track to deliver full-year operating profit in line with market views. The homebuilder rose as much as 1.6% in early trading and was up 0.7% as of 8:15 a.m. in London.

Read more: All the Ways Britain’s Housing Market Is Starting to Go Wrong

(Updates with profit expectations and share price move in the last paragraph.)

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