Houesbuilder says excess capacity in construction sector is keeping costs down despite material and fuel inflation

Rising fuel and commodity prices are being offset by low construction costs, according to the Berkeley Group’s latest interim statement.

The housing developer said: “Build costs remain benign with underlying increases in fuel and commodities offset by excess capacity in the construction sector, although we continue to monitor this closely.”

Berkeley added that sales reservations for the quarter were up 25% on the same period last year, with forward sales exceeding £800m.

During the quarter the firm acquired a further 1,000 plots across eight new sites bringing the year total to 3,500 across 21 sites.  

Berkeley also obtained planning on two key mixed use developments in Southwark and Battersea.