(Reuters) – British homebuilder Berkeley Group Holdings said on Wednesday transaction levels in London have been impacted by pandemic-related restrictions, after reporting a rise in annual profit spurred by strong demand for new homes.
UK’s housing market has seen a surge in demand and prices boosted by the stamp duty holiday, a government mortgage guarantee scheme and as the work-from-home trend has raised interest in more spacious properties.
The company, which operates mainly in London, Birmingham and the South of England, said transaction levels in the capital city have been impacted by the restrictions on travel and deferral of certain sales launches, among other things.
However, it added that enquiry levels in London are now ahead of pre-pandemic levels, which signals the return of confidence to the housing market there.
“Progress made in the last year and strong cash position provides Berkeley with a clear focus on increasing investment in its Group and joint venture land holdings, including further selective acquisitions,” said Chief Executive Officer Rob Perrins.
Berkeley, one of the UK’s largest housebuilders by market value, said pre-tax profit for the year ended April 30 came in at 518.1 million pounds ($722.13 million), compared with 503.7 million pounds a year earlier.
($1 = 0.7175 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Amy Caren Daniel)
