Brexit uncertainties hit Berkeley reservations

Reservations in the five months to May at property group Berkeley fell 20% due to uncertainty over Brexit.

Full year pre-tax profits fell to £530m from £539.7m due to reduced ground rent sales, Berkeley added, while forward sales increased to £3.25bn from £2.95bn.

“The outcome of next week's referendum on Britain's membership of the European Union is significant for the UK's housebuilding and property sector.,” said chairman Tony Pidgley.

“Berkeley supports a vote to remain in the EU. London's status as the world's best big city is underpinned by labour mobility, cultural diversity and a constant influx of talent and investment from around the world, and the UK economy in turn is powered by the success of our capital city.”

Chief executive Rob Perrins said the housing market in London and the South East continued to have “strong underlying fundamentals with an imbalance between demand and supply, a persistent low interest rate environment and high employment levels, notwithstanding recent unhelpful changes to property taxation”.

“The short-term outlook is impacted by uncertainty whether it be global in nature or through the economic consequences of the outcome of the EU Referendum,” he said.