Partly Cloudy

Partly Cloudy

max temp: 13°C

min temp: 6°C

Search

Berkley reports amid growing signs of London property market woes

PUBLISHED: 06:00 04 December 2017

London town houses

London town houses

AndreaAstes

Half-year results from housebuilder Berkeley will be in the spotlight next week amid further signs of a slowdown in the London property market and in light of the Budget stamp duty give-away.

The group, which is focused on London and the South East, will be eyed closely for its views on falling demand for high-end homes in the capital, as well as any early signs of a boost from the move to scrap stamp duty for first-time buyers on the first £300,000 of properties worth up to £500,000.

There has been contrasting views among builders on the housing sector in recent weeks, although most agree that there is a clear slowdown in London - Berkeley’s main market.

Rival London builder Telford reiterated in its recent interim results that Brexit uncertainty and tax changes were knocking demand for higher priced homes in London, but said this continues to be offset by an ongoing shortage of homes in the capital.

Berkeley said in September that it was in “excellent shape” despite warning that Brexit worries were compounding already difficult conditions in the capital after recent stamp duty tax hikes and planning woes.

It said that new construction in London remained 30% lower than 2015 levels due to a challenging planning environment.

But Berkeley also confirmed that annual profits were on track to be “at least as strong” as the previous year as sales prices for the first four months of its year were above its business plan.

Friday’s figures are also set to see the group confirm that it expected to make at least £3 billion of pre-tax profit by 2021.

Analyst Chris Millington at Numis said there was scope to increase this target.

He added: “In our view, the main focus of the update will be Berkeley’s assessment of current market conditions and whether the changes to stamp duty in last week’s Budget have had any noticeable impact on the demand profile.”

Berkeley’s interims also come after it faced a showdown with investors over pay plans with top bosses.

The plans were passed at its annual general meeting in September, but 16% of shareholders voted against the plans amid a backlash over a £92 million windfall for six executives thanks to a long-term shares bonus scheme set up in 2011.

The countdown to an international cycling spectacular sweeping through the heart of Suffolk in June has stepped up a gear – as a high-profile dignitary swapped her civic chain for a bicycle one.

An Ipswich man allegedly confessed to a friend that he had stabbed father-of-five Dean Stansby but hadn’t meant to kill him, a court has heard.

Schools in Ipswich are among the most under-funded in Suffolk according to new figures obtained by a union-sponsored website.

In 2012 the Woodbridge teenager had just become an internet sensation.

Ipswich Town owner Marcus Evans has given his first-ever interview on camera - and revealed that he plans to appoint a new Blues boss ‘towards the end of May or early in June,’ plus admitted that raising season ticket prices last year was a mistake.

A black tie charity ball is taking place to collect cash for an Ipswich-based baby bereavement support group.

Rail conductor/guards working on Greater Anglia trains have called a second one-day strike in early May – but the company insists passengers will not be affected.

The harshest winter for years is set to cost Suffolk County Council millions of pounds according to a report by officials.

Politicians from across the political spectrum have joined together to recognise the achievements of Aldeburgh born suffragist Dame Millicent Fawcett as a new statue was unveiled in her memory.

If you are desperate for a three-day weekend you will be happy to hear that you don’t have long to wait.

Most read

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24