Construction UK Logo For Mobile
Time and date
Share this page
Construction News

New Home Starts Decline 30% In London - Berkeley

Construction News Image
Berkeley Group has reported a 30% fall in the number of housing states in London.

In a trading update covering 01 November 2016 to 28 February 2017, the house builder revealed reservation rates in the seven months post-Brexit between August and February were also down 16% compared to the previous year. However, sales levels have recovered over the previous two months to sit ahead of last year.

Berkeley stated the decline has been caused to delays in the planning system and added its concern over the under-supply of new homes in the capital.

"When coupled with the planning environment and increased demands from the combination of affordable housing, CIL, Section 106 obligations and review mechanisms, this has resulted in new starts in London falling by some 30%," the Group said.


"Berkeley is concerned by this under-supply and the knock-on effect it has on the provision of housing of all tenures which, if not addressed, represents a threat to London remaining the inclusive and open global city which is so important to London and the UK's growth and prosperity. We therefore welcome the Government's White Paper and the Mayor's continued focus on housing but note that these will take time to effect change, given the competing priorities."

Elsewhere, the company is set to make at least £3 billion in pre-tax profits over the five years to 30 April 2021.

"Pre-tax profits for the year ended 30 April 2017 are expected to be at the top end of analysts' expectations, with the actual outturn dependent upon completion timing on Berkeley's larger developments. A similar level of profitability is anticipated for the year ending 30 April 2018," the company said.


Latest Construction News


Muse Developments has been selected to deliver a £75 million regeneration scheme in Dartford. The mixed-use project in the Westgate area involves building 37,250 sq ft of restaurant and bar space containing a six-screen cinema, a new public square, a 109-bed hotel, a multi-storey car park and 140 n

McMullen Facades has secured an £11 million contract to help deliver a new specialist cancer centre hospital in Liverpool. The company will develop a new facade for The Clatterbridge Cancer Centre NHS Foundation Trust's new specialist hospital, which will be located adjacent to the existing Royal L

J Murphy & Sons has been selected to install almost 60km of underground cables as part of an offshore wind farm project near Lincolnshire. The company will design and install the Triton Knoll project's critical onshore cable circuits, which will stretch from the point of landfall near Anderby Creek

Developer Homes by Esh has been appointed to a new residential framework agreement by Darlington Borough Council. The joint venture (JV) contract will create new homes in Darlington as part of the council initiative to create residential developments at agreed sites across the Borough. Homes by Es

Work is underway on a new £4.8 million housing development in St Albans, Hertfordshire. Morgan Sindall is building 10 homes on the site of the former Museum of St Albans as part of the council's plan to develop a new cultural hub in the city centre. Located on Hatfield Road, the scheme will contai

Three bedsits in Liverpool have been closed after serious concerns were raised over their condition and fire safety. Acting on intelligence, officers from the council's Landlord Licensing team discovered a 'catalogue of hazards' at accommodation above commercial premises in Lodge Lane, Toxeth. The

Bouygues UK has won an £8.5 million contract to provide consultancy support on the University of Cambridge's plans for a new modern physics laboratory and a neighbouring shared facilities hub. The company will work alongside Bouygues Energies & Services and design partners NBBJ and BDP to develop p

UK house builder Bellway has reported a rise in revenue and profits for its preliminary results for the year ended 31 July 2017. The company saw revenue grow 14.2% to £2,558.6 million (2016: £2,240.7m), with pre-tax profit up 12.6% from £497.9m in 2016 to £560.7m this year. Temporary Executive Cha

Work is to begin on a £800,000 road resurfacing project in Cumbria. Highways England will start carrying out road repairs along a one-and-a-half mile section of the A66 between North Stainmore and Brough from Monday, 23 October. The month-long project to resurface the westbound carriageway between

Work on a railway track upgrade project at Kelvedon in Essex is now complete. The scheme follows work by Network Rail engineers to install a total of 274 metres of new track between Stowmarket and Manningtree, as well as work to replace four switches and crossings units over the last three weekends
Bathe N.I.C-Tec Building SolutionsC-Tec Building solutionsStainless UK LtdCHF SuppliesBeards Blinds & AwningsMucktruck UK LtdTechreline LimitedUpminster Containers LtdSouthern Plant Spares
Terms and Conditions