Berkeley Group Presses for UK Homebuilder Tax Reform as Buyer Sentiment Sags
Berkeley Group's Call for Tax Reform Amidst Challenging Market Conditions
Subdued Buyer Sentiment Ahead of October Budget
Sept 11 (Reuters) - UK homebuilder Berkeley Group said on Friday that buyer sentiment remained subdued in the run-up to Britain's October budget, and renewed its calls for tax and regulatory changes to stimulate demand and construction in the housing market.
Proposed Stamp Duty Reforms
Recommendations for First-Time Buyers and Downsizers
The London-focused developer urged the government to reform stamp duty, a property purchase tax, including capping the levy at 1% for first-time buyers and downsizers, and scrapping a 5% investor surcharge.
Financial Performance and Outlook
Profit Plan and Financial Year Expectations
The company said it continues to operate within its four-year £1.4 billion ($1.89 billion) pre-tax profit plan, with profits expected to be slightly weighted towards the first half of the current financial year.
Market Challenges Impacting the Sector
Rising Costs and Reduced Demand
Rising mortgage and inflation rates have weighed on housing demand, while construction cost pressures stemming from the Middle East conflict have pushed British homebuilders including Berkeley to cut land buying and building targets.
Political and Geopolitical Factors
Berkeley said the prolonged conflict and political change in the UK had dampened sentiment further, weighing on trading and housing market activity.
Exchange Rate Information
($1 = 0.7398 pounds)
Reporting Credits
(Reporting by Simone Lobo and Raechel Thankam Job in Bengaluru; Editing by Janane Venkatraman)