Berkeley flags hits from new lockdown and Brexit

Berkeley Group said today the coming months would be crucial to gauge the impact of new Covid-19 lockdowns and Brexit, after posting a 16.6% fall in first-half profit as home sales were dented by the pandemic. 

Berkeley is one of Britain’s biggest housebuilders by market value.

It said the number of homes sold during the period fell to 1,104 from 1,389 a year earlier, while the average selling price jumped 24% to £799,000. 

British house prices rose by the most in nearly six years in November, mortgage lender Nationwide said earlier this week, as a boom in the housing market accelerated while the broader economy struggled with the pandemic. 

Housing market conditions are closely linked with consumer confidence, which has taken a hit since Britain decided to leave the European Union. 

The Brexit transition period is due to end this year, with the trade deal between the European Union and the UK hanging in the balance. 

Berkeley said it was firmly on track to deliver its average annual pre-tax profit outlook of about £500m this fiscal year as pent-up demand and tax cuts for home buyers spurred demand. 

Forward sales increased to £1.94 billion at October 31 from £1.86 billion at the end of April. 

The company, which operates primarily in London, Birmingham and the South of England, said pretax profit fell to £230.8m for the six months ended October 31 from £276.7m a year earlier. 

Source link

Add a Comment