Berkeley reiterates revenue plan as housing market warning persists

Berkeley Group mentioned cautious patrons and a weaker financial backdrop continued to weigh on the housing market, however that it remained on monitor with its four-year revenue plan.

It’s a well-known story for housebuilding buyers and one which underscores the near-term uncertainty within the UK property market.

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The London-focused housebuilder mentioned sentiment had been dented additional because the begin of its monetary yr by the continuing clash within the Middle East and political uncertainty within the UK.

While enquiries have been good and secure, it mentioned prospects with out a direct want to maneuver remained extra hesitant to commit, and that some patrons may defer purchases till after the federal government’s Budget on the finish of October.

Against that backdrop, Berkeley reiterated that it was working inside its four-year plan to ship £1.4bn of pre-tax revenue, with earnings anticipated to be broadly even throughout the interval and barely weighted to the primary half of the present yr.

In April it had introduced plans to chop manufacturing by round 1 / 4 over 4 years, prioritising money era over short-term revenue.

Berkeley additionally renewed its name for stamp obligation reform, urging the federal government to cap the tax at 1% for first-time patrons and downsizers and scrap a surcharge on buyers, arguing that the present regime was choking housing transactions and, in flip, provide.

It appears Berkeley Group’s fortunes, like all FTSE 100 housebuilders, relaxation with the UK authorities.