Berkeley mentioned that its dwelling transaction volumes had fallen to “round a 3rd decrease” than a yr in the past.
“Whereas we’ve got seen a slight uptick in current weeks, a significant restoration would require a sustained enchancment in shopper 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 due to this fact 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 houses over the subsequent 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 houses over the subsequent 5 years as “formidable”, including it could be “an almighty problem” to hit that concentrate on over the subsequent 5 years.
Over the earlier 5 years, the nation constructed round 1 million houses.
Berkeley, additionally illustrated the dimensions of the “problem,” mentioning that housing begins in London fell to simply 8,450 within the yr to the tip of June, in response to the most recent 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 carefully with all ranges of presidency to make sure that this constructive momentum rapidly interprets into economically viable planning consents to unlock larger funding and supply on the bottom, however it will take time.
“We additionally stay alive to the very important modifications to constructing rules and the institution of a brand new trade regulator. This crucial change brings uncertainty because it beds in and with it the chance of delays and extra prices.”
The corporate posted pre-tax earnings within the half-year to October of £275m, down 7.7% from a yr in the past.
Nevertheless, the enterprise mentioned it was on observe 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 have been down 0.7% to 4,138p in late afternoon buying and selling.
