Berkeley calls for ‘change of attitude’ to hit Labour housebuilding targets

Berkeley Group has called for a “change of attitude” if the UK is to hit the Government’s housebuilding targets over the coming years.

Labour has said it wants to build 1.5 million homes between now and 2029, a target which would need the sector to significantly boost its output if it is to be met.

Chancellor Rachel Reeves has said she will reform the planning system to help meet the target, which is expected to help builders.

The Government will also restore mandatory housebuilding targets for local authorities as part of the drive.

Berkeley said it “supports the proposed changes” to the planning system.

But it added: “Achieving this ambition requires a change of attitude and a refreshed partnership approach to allow developments, that are currently stalled, to come forward, and Berkeley is committed to playing its full part in delivering the new homes the country needs.”

The update came as the FTSE 100 firm reported that it was on track to hit its profit guidance for the next financial year.

Berkeley has said it expects pre-tax earnings to be £525 million, and said today that 90% of that is “already secured through exchanged sales contracts”.

Pre-tax profits for the year are expected to be weighted towards the first half, it said, in a trend that would mirror last year’s trading.

The group said net cash will be about £450 million at the end of October, down from £532 million at the end of April, after it returned £229 million to its shareholders in the first half of the year.