Berkeley Group, one of the largest home builders in the United Kingdom, warned the government that offering the other cladding tax will put “great pressure” on its goal of providing 1.5 million homes by the end of 2029.
This warning follow -up to the industry level about the installation costs associated with the treatment of insecurity, highlighted by the Grenfell Tower tragedy in 2017.
The developers are already competing with 4 percent additional fees in corporate tax and imminent construction safety tax – estimated to collect up to 3 billion pounds. The government insists that the new charge will accelerate the necessary reforms, but many real estate companies are afraid that the costs and additional regulations in construction will slow down while the nation urgently needs more homes.
In his commercial update on Friday, Berkeley expressed her warning “the extent and speed of organizational changes” in recent years. Quoting the story tax that will be soon, the company said that these “additional” adjustments can undermine the delivery of new homes. This view was echoed by Jenny Dali, CEO of Taylor Wimbi, who recently warned that other “expensive requirements” would make it difficult to build quickly and widely.
Berkeley was founded in Sari in 1976 by Tim Farr and Tony Bedley, Berkeley built 3521 homes in its last financial year – ever in London and around him. Under CEO Rob Berenz, he also moved to the rental sector with plans to manage up to 4,000 homes.
Despite the cladding tax on the horizon, Berkeley's statement of circulation referred to a “modest improvement in sales reservations” during the winter season, with wages growth, fixed houses prices and improving mortgage deals all cautious buyers to the market. Al -Bani emphasized that continuous confidence depends on the course of interest rate discounts and broader economic stability.
The company confirmed at least 975 million pounds of pre-tax profit over the next two years, including 525 million pounds in 2025-a rare offer to optimism in a sector that is still fighting with multiple opposite winds. Analysts welcomed this “short and reassuring update”, as Berkeley's shares increased by 1.4 percent to 36.08 pounds, although they are still 26 percent low on an annual basis.
The shareholders ’returns also remain in focusing, as the developer has operated 71.3 million pounds from his shares since December and prepared to return 156 million pounds by September by additional re -purchases or other profits. The upcoming profit compensation of 33 million pounds will be paid at the end of this month.
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