Politicians Blamed by Berkely for Barriers to Building Homes

Photo by Komstadt Systems from Flickr

On Friday, Berkeley, the housebuilder, attacked politicians again for putting the brakes on development ton as the shares of the property firm plunged after a downbeat update.

Even though the company is in line to achieve its target of generating £3.3 billion in profits by 2021, the City was frustrated with the comments that it was being hindered in attempts to raise production beyond the levels in its business plan.

The shares fell 218p, or 5 percent, to 3705p as the company blamed limits on mortgage borrowing, high stamp duty costs, and economic uncertainty for the inability of the firm to increase supply.

Berkeley also blamed barriers on the buy-to-let market and the “time and complexity” of getting onside after planning approval.

The company added that despite a “compelling” market in the south-east and London, the operating environment “does not support the step-up in Berkeley’s production levels that these markets so badly need.”

Anthony Codling, the Jefferies analyst, stated: “While some view being a housebuilder as a licence to print money, it turns out that constructing homes is more complicated than building a printing press.

“We need more homes, but when even the master craftsmen are constrained, we need Government policy to help, not hinder.”