UK property group Berkeley wary after rate rises

UK property developer Berkeley Group today unveiled double-digit profits growth as strength in its core London market helped offset weakness in the south east of the UK as interest rate rises started to bite.

The group posted a 14% rise in pre-tax profits to £188m (€280m) for the year to the end of April, with land holdings up 27% to more than 30,000 plots.

But Berkeley cautioned of challenges ahead, with the rate rises having undoubtedly “tempered” the housing market in the south east and the recent announcement that the UK Office of Fair Trading is to scrutinise the housebuilding sector.