Housebuilder says the fundamentals in its main markets in London and the South East remain strong
Berkeley Group has delivered a bullish verdict on the housing market as it defied tough conditions to report strong interim results.
The housebuilder reported pre-tax profit of £90.6m for the six months ended 31 October, up 11.2% on the same period last year. Turnover rose 15.8% to £441.4m.
Chief executive Tony Pidgley said that the group’s strong balance sheet and focus on land acquisition in London and the south east meant that it was “uniquely placed to respond to the market conditions initiated in the credit markets that currently prevail.”
Pidgley said: “We believe that the fundamentals of the housing market in London and the South East remain strong. Demand continues to outstrip supply, interest rates remain at historically low levels, and benefited from yesterday's decision by the Bank of England to reduce rates by a quarter per cent... In competitive markets, customers become more discerning and this provides an environment in which the best will thrive”.