Many housing developers are reporting stronger than expected results for quarter 2. The general consensus is that revenues, and even margins, are steadily increasing. Obviously, buoyant news given the uncertainty surrounding the country.
It is therefore interesting to read Berkeley's view on gaining traction regarding development opportunities in the city. Imposed levies, governments drive for affordable housing, and stamp duty are seemingly stifling the developers' opportunities.
Berkeley said: ‘What is increasingly clear is that Government policy, which has been helpful outside London, has had a negative effect on the capital. “Transaction taxes are now too high and this is restricting both mobility in the second hand market and the pace of supply and delivery of new homes in London and the South East. “There is also a tension between the national policy on Starter Homes and the London Mayor’s ambition to build more affordable housing, while the very high rates of the Community Infrastructure Levy adopted by local authorities now pose a significant threat to development viability.