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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Economy

Economy

UK’s Berkeley flags subdued demand in housing market

Hoardings display a logo of Berkeley Group outside a development in London, Britain, March 4, 2023. REUTERS/Henry Nicholls/File Photo
Hoardings display a logo of Berkeley Group outside a development in London, Britain, March 4, 2023. ... Hoardings display a logo of Berkeley Group outside a development in London, Britain, March 4, 2023. REUTERS/Henry Nicholls/File Photo
Hoardings display a logo of Berkeley Group outside a development in London, Britain, March 4, 2023. REUTERS/Henry Nicholls/File Photo
Hoardings display a logo of Berkeley Group outside a development in London, Britain, March 4, 2023. ... Hoardings display a logo of Berkeley Group outside a development in London, Britain, March 4, 2023. REUTERS/Henry Nicholls/File Photo

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On Friday, the British high-end homebuilder Berkeley (BKGH.L) joined its counterparts in the industry to highlight the challenging trade circumstances in the housing market. This is because high mortgage rates and a dismal macroeconomic background discourage customers from purchasing investment property.

Because pricey house loans and broader economic troubles have weighed on affordability, the housing industry in Britain has been experiencing a significant slowdown for most of this year. As a result, builders have been forced to warn about profit and reduce their home-build objectives.

“We anticipate the sales market will remain subdued before inflecting in its normal cyclical manner once there is greater confidence in a downward trajectory for interest rates and economic stability returns,” President and CEO Rob Perrins stated.

In the three years leading up to the fiscal year 2026, Berkeley anticipated a profit before taxes of at least 1.5 billion pounds, equivalent to $1.89 billion. The company had previously projected a profit of 1.05 billion pounds for the fiscal years 2024 and 2025.

In contrast to its more prominent competitors, Berkeley (BKGH.L.) is primarily concerned with redeveloping land that was once used for industrial purposes. The company said private bookings for the first half of the year were around one-third lower than the levels obtained for the 2023 fiscal year.

During the six months that concluded on October 31, the FTSE 100 (.FTSE) builder reported a pre-tax profit of 298 million pounds, which represents an increase of almost 5%.


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