Berkeley Group halts work on luxury development in London

2nd Sep 2016 16:06

(ShareCast News) - Berkeley Group´s abrupt decision to halt work on a luxury development in London may point to rough seas ahead for the sector in the wake of the referendum vote.The luxury homebuilder halted construction at the £20m Barnes Village project in southwest London but declined to provide a reason, Reuters reported.Local residents said the homes had been expected to sell for about £5m each.While it was not unusual for builders to wait for optimal market conditions before starting work it was rare for them to stop in the middle of it, Peel Hunt analyst Clyde Lewis told the newswire."The London market has got a bit tougher post-Brexit [...] The value end of London is still selling OK but more expensive stuff is selling slow," Lewis said.As of 1549 BST shares in Berkerley Group were trading 0.54% lower at 2,760p.