Considered one of UK’s greatest homebuilders turns into newest to really feel impression of provide chain issues | Enterprise Information

Considered one of Britain’s largest homebuilders has reported seeing development prices balloon, regardless of a rebound in London home gross sales following the lifting of pandemic restrictions.

Berkeley Group, which is concentrated on higher-end properties in London and the South East, stated that constructing supplies had been affected by price inflation, triggered by provide chain points and workers shortages which are at the moment inflicting issues throughout the UK.

“Whereas the gross sales market has been resilient, the working atmosphere stays difficult,” the corporate stated in an announcement on Friday.

“As reported within the wider market…we now have continued to expertise inflationary stress in construct prices throughout this era, principally by way of supplies, and we’re aware of ongoing points within the provide chain and labour market ensuing from Brexit and the pandemic.”

Berkeley repeatedly warned of damaging penalties for the housing market within the run-up to the UK’s departure from the EU.

In a buying and selling assertion, Berkeley stated that it was on observe to satisfy revenue steerage and submit an annual pre-tax revenue of £518m or extra for the yr, matching or exceeding what it reported for the earlier 12 months.

The housebuilder was initially hit by delicate costs in London, which has lagged behind the remainder of the nation within the housing increase. However for the reason that lifting of lockdown, Berkeley stated, the capital has seen a rebound with costs firming up.

Exterior of London, the corporate stated that the market remained strong.

Berkeley added that initially of the present monetary yr, it had £1.1bn in money, which it deliberate to proceed investing in its land holdings.

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