Profits at Berkeley Group expected to dive by almost a tenth following slowdown in property market
Profits at Berkeley Group are expected to dive by almost a tenth following the slowdown in the property market.
The FTSE 100 upmarket housebuilder has been hit by a slump in sales, which it previously said were down by a third.
Higher-for-longer interest rates have put off many would-be buyers from moving, as mortgages became expensive.
The average price of a Berkeley home is £624,000 compared to the UK average of £375,000, according to property firm Rightmove.
Results this week are expected to show Berkeley’s profits fell to around to £550 million in the year to April from £604 million the year before.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said Berkeley had dealt with the problems plaguing the industry ‘better than most’.
He said its focus on London and building expensive homes means it ‘offers something different’ to its major rivals.
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Housing industry experts expect sales will remain sluggish until the Bank of England cuts interest rates and the General Election is held next month.
Last week, another major housebuilder, Crest Nicholson, rejected a £650 million takeover from rival Bellway.
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