Berkeley Freezes Investment in UK Housing Market as Rates Weigh

The developer said it chose not to acquire any land from May through August, citing ongoing issues in the planning system, persistent inflation and high interest rates, according to a statement Friday. Berkeley reported a 35% drop in the value of new home reservations in the period compared with the rate the previous year.UK households are facing greater costs triggered by higher borrowing costs and inflation that’s reached generational highs.

Britain’s four largest listed homebuilders have seen their market capitalizations tumble this year, with Persimmon Plc dropping out of the FTSE 100 last week on the back of a slump in first-time buyer sales. Barratt Developments Plc, Persimmon and Taylor Wimpey Plc, which collectively built more than 45,000 homes last year, are expected to complete fewer properties in 2023 as high rates crush demand.

However, Berkeley — which builds far fewer homes per year than its main three rivals and focuses on more affluent customers in London and the southeast of England — said pricing remains resilient and above its business plan levels due to the constrained supply of homes in the market, while cancellation rates are stable.

Property Property Latest News, Property Property Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

New Democrats vow to push for swift action on housing as caucus meets in OttawaNDP caucus chair and housing critic Jenny Kwan said New Democrats will use their leverage with the Liberals to ensure the government's fall economic statement promises swift action to address the housing crisis.
Source: CBCPolitics - 🏆 79. / 51 Read more »

Profs, students recruited to combat housing crunch - constructconnect.comA recent presentation to Association of Municipalities of Ontario (AMO) members heard that innovation to address the province’s housing crisis is coming from two distinct communities on university campuses: research breakthroughs from scholars, and the en
Source: DCN_Canada - 🏆 17. / 74 Read more »

Toronto housing market cools in August amid rising borrowing costs: TRREBHome sales decline, average selling price remains flat
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Toronto housing market cools in August amid rising borrowing costs: TRREBHome sales in the Toronto area declined on a year\u002Dover\u002Dyear basis in August while the average selling price remained flat. Read more.
Source: fpinvesting - 🏆 43. / 63 Read more »

Toronto housing market cools in August amid rising borrowing costs: TRREBHome sales in the Toronto area declined on a year\u002Dover\u002Dyear basis in August while the average selling price remained flat. Read more.
Source: financialpost - 🏆 7. / 85 Read more »