Berkeley posts first-half home transactions down by ‘a third’   – Mortgage Strategy

Berkeley mentioned that its residence transaction volumes had fallen to “round a 3rd decrease” than a 12 months in the past.

“Whereas we now have seen a slight uptick in current weeks, a significant restoration would require a sustained enchancment in client confidence and stability within the wider macroeconomic setting,” added one of many nation’s largest housebuilders in a first-half buying and selling assertion.

It identified: “We subsequently welcome the federal government’s mission for development and its brownfield-led housing agenda to resolve the problems within the planning system and ship 1.5 million new properties over the following 5 years.

“Certainly, the energy and tone of presidency’s housing commitments have already galvanised the planning system.”

The agency’s assertion comes a day after Prime Minister Keir Starmer described his administration’s plans to construct 1.5 million properties over the following 5 years as “bold”, including it will be “an almighty problem” to hit that focus on over the following 5 years.

Over the earlier 5 years, the nation constructed round 1 million properties.

Berkeley, additionally illustrated the dimensions of the “problem,” mentioning that housing begins in London fell to only 8,450 within the 12 months to the tip of June, in line with the newest quarterly statistics from the housing division.

It added: “This compares to the federal government’s newly recognized annual goal of 80,000 for the capital.”

However the builder mentioned: “We are actually working intently with all ranges of presidency to make sure that this optimistic momentum rapidly interprets into economically viable planning consents to unlock larger funding and supply on the bottom, however this may take time.

“We additionally stay alive to the very important adjustments to constructing rules and the institution of a brand new business regulator.  This mandatory change brings uncertainty because it beds in and with it the danger of delays and extra prices.”

The corporate posted pre-tax income within the half-year to October of £275m, down 7.7% from a 12 months in the past.

Nevertheless, the enterprise mentioned it was on monitor to hit revenue steerage for 2025 and 2026, and unveiled a brand new 10-year technique, which incorporates plans to spend £2.5bn on land.

Berkeley shares had been down 0.7% to 4,138p in late afternoon buying and selling.