Berkeley blames the politicians for barriers to building homes

Housebuilder Berkeley again attacked politicians for putting the brakes on development ton Friday as the property firm’s shares sank following a downbeat update.

Although the firm is in line to hit its target of generating £3.3 billion in profits by 2021, the City was disappointed with comments that it was being stymied in efforts to boost production beyond the levels in its business plan.

The shares dropped 218p, or 5%, to 3705p as it blamed high stamp duty costs, limits on mortgage borrowing and economic uncertainty for its inability to increase supply.

It also blamed curbs on the buy-to-let market and the “time and complexity” of getting onside following planning approval.

Despite a “compelling” market in London and the south-east, the operating environment “does not support the step-up in Berkeley’s production levels that these markets so badly need,” it added.

Jefferies analyst Anthony Codling said: “Whilst some view being a housebuilder as a licence to print money, it turns out that constructing homes is more complicated than building a printing press.

“We need more homes, but when even the master craftsmen are constrained we need Government policy to help, not hinder.”