British housebuilder hits pre-Covid profit levels

Berkeley said it has increased its earnings outlook for the current fiscal year by 5%.

Rising house prices have helped British building firms to tackle cost pressures from supply chain disruptions. File Picture: Joe Giddens/PA Wire

British housebuilder the Berkeley Group raised its annual profit outlook after sales recovered to pre-Covid-19 levels on strong demand in an under-supplied housing market.

Berkeley, which operates mainly in London, Birmingham, and the south of England, said it has increased its earnings outlook for the current fiscal year by 5%, and anticipates 5% annual profit growth for the next three years.

Cheap mortgages have underpinned the British housing sector after a tax holiday introduced to prop up purchases was phased out in September, while robust house prices have helped the builders tackle cost pressures from supply chain disruptions fuelled partly by Brexit and the Covid-19 pandemic.

The top three British homebuilders Barratt Developments, Persimmon, and Taylor Wimpey have all forecast strong demand in spite of persistent supply chain woes.

Taylor Wimpey said yesterday that its chief executive, Pete Redfern, will step down from his role after spending more than 14 years at the helm.

Reuters