Berkeley has reported profits of £110 million to April 2010, despite declines in sales prices across the residential property market.
Residential property developer Berkeley has reported pre-tax profits of £110.3 million despite declining housing market values.
This is 8.4 per cent lower than profits in 2009, with the difference attributed to the decline in revenue, owing to the average sale price dropping from £395,000 to £263,000.
Despite these
sources of finance taking a hit in the downturn, Berkeley indicated that the sales prices had been marginally ahead of the business plans forecast last year.
The firm raised £19.6 million in revenue from
commercial development sales, having disposed of 19 mixed-use units across the UK, including the 12,900 sq ft Tabard Square retail, office and restaurant space in London.
Commenting on the results, Berkeley managing director Rob Perrins said: "Demand from equity rich investors and those from overseas who are aided by the weakness of sterling has been strong, while the UK domestic market continues to be constrained."
Meanwhile, FirstRungNow.com has forecast that the changes to capital gains tax announced by chancellor George Osborne in the emergency Budget could make the property market more competitive.
The advisory website believes that landlords could be encouraged to sell up this summer in a bid to maximise profits.
Posted by Lisa Crowley
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