Berkeley Group’s profits are expected to fall by almost a tenth following the property market slowdown.
The FTSE 100 luxury homebuilder has been hit by a drop in sales, which it had previously said had fallen by a third.
Longer higher interest rates have deterred many would-be buyers from moving, as mortgages became expensive.
The average house price in Berkeley is £624,000, compared to the UK average of £375,000, according to property company Rightmove.
This week’s results are expected to show Berkeley’s profits fell to around £550m in the year to April from £604m a year earlier.
Expensive: The average house price in Berkeley is £624,000 compared to the UK average of £375,000.
Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, said Berkeley had addressed 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 main rivals.
Property industry experts expect sales to 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 £650m takeover by rival Bellway.
Share or comment on this article: Berkeley Group’s profits expected to fall by almost a tenth after housing market slowdown
Some links in this article may be affiliate links. If you click on them, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
You Might Also Like
- Follow Goldman Sachs’ brick road: The bank must be right to cash in on some of its tech stocks, says HAMISH MCRAE
- Ten years of creation: the secrets of the new King Charles banknotes
- Boodles sees sales rise by 13% to more than £100m as customers splash out on expensive watches and designer jewellery
- Meme Stock Star Roaring Kitty Faces US Investigation Over Gamestop’s Latest Trading Claims
