Value of sales reservations drop 35%, developer says
Berkeley has not bought any land since 1 May this year due to uncertainty around regulations and the economy, it has admitted.
In a trading update this morning, the 拢2.6bn-turnover London-focused housebuilder said: 鈥淭he complexity and protracted nature of the current planning system and lack of clarity surrounding certain regulatory changes affecting our sector, at a time of considerable uncertainty for the UK economy with persistent high inflation and interest rates, continues to deter investment into brownfield regeneration and the wider housebuilding sector.
鈥淐onsequently, Berkeley has not acquired any land in the period and will only invest very selectively in new opportunities.鈥�
Berkeley said buyer enquiries have stayed at similar levels over the last four months but the value of underlying private sales reservations has fallen 35% year-on-year.
However Berkeley is still confident it can deliver 拢1.05bn of pre-tax profit over the next two financial years as indicated in its annual results earlier this year.
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The housebuilder to boost brownfield development, which it said its needed as a result of changes to the Levelling Up and Regeneration Bill and the National Planning Policy Framework.
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