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Housebuilder Berkeley warns over London property market
Berkeley has warned the London’s housing market “lacked urgency”, with the capital constrained by high transaction costs, limits on mortgage borrowing and economic uncertainty accentuated by Brexit.
The housebuilder said conditions for growth and low barriers to entry are currently absent from London and the South East housing market in a trading update covering May 1 to August 31 2018.
However, the group added that in the first four months of this financial year, market conditions and prices in the regions remained robust, with demand for good quality and well-located homes.
Berkeley said it is finding opportunities to invest, and has acquired five new sites in the period.
The company confirmed its guidance to deliver at least £3.375bn of pre-tax profits for the five year period from 1 May 2016 to 30 April 2021, with at least £1.575bn pre-tax profit to be delivered in the two years ending 30 April 2019.
