All eyes will be on housebuilder Berkeley next week when it reveals its half-year results. The timing is significant as it coincides with further signs of a slowdown in the London property market and follows the Budget stamp duty give-away.
As PA reports, 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.
UK first-time buyers will pay no stamp duty at all on properties worth under £300k. Those with a bit more cash to spend, will get the first £300k stamp duty-free on houses worth up to £500k.
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.
Next week’s figures are also set to see the group confirm that it expects to make at least £3bn of pre-tax profit by 2021.