Berkeley leans on strong London demand

8th Sep 2010 07:27

South east-based housebuilder Berkeley reports demand in the Capital has held up over the past three months, though business is tougher outside London and it is concerned over the changes to the planning process. "Demand for properties in the period from 1st May to 31st August 2010 has been resilient, particularly in London which has a shortage of supply and specific demand from international purchasers who are keen to invest in the Capital," Berkeley said."Outside London, which is reliant on the UK domestic economy to a greater extent, a lack of credit availability and overall consumer confidence is a constraint to achieving an increase in transaction volumes at this point in the market cycle," it added.Berkeley has maintained forward sales above £600m and from this base expects to achieve its objective of growing earnings per share by 10% in the current financial year, though it says the changes to the planning process are affecting the whole sector."The removal of the South East Plan and a move towards decentralising planning decisions has understandably created a degree of uncertainty in the planning process," it said. "In addition, our industry is currently experiencing an unprecedented number of changes to regulations which will affect the design of new homes. When coupled with the anticipated reduction in funding for affordable homes, this is likely to result in a lower level of new homes unless the planning burden is reduced," the statement added.