Berkeley races to build out all sites with planning

Aaron Morby 6 years ago
Share

London house builder Berkeley Group has ramped up house building activity, staring work on all its sites with planning approval.

Chairman Tony Pidgley said the firm had pressed the start button on 65 of its 77 sites, as it delivered a 40% rise in pre-tax profits to £380m in the year.

The firm is trying to drive the remainder through the planning process to meet demand after completing 3,742 new homes in the year at an average selling price of £423,000.

Berkeley’s move to increase building activity comes as the first signs emerge of cooling in the overheated London property market, after selling asking prices actually fell in the last month by 0.5%, according to property website Rightmove.

Pidgley said: “These are strong results which reflect the current market conditions and Berkeley’s bold strategy to invest at the right point in the economic and housing cycle.”

He said that Berkeley has invested an extra £353m in buying nine new sites in the year, sufficient to build a further 2,500 new homes.

Investment in work in progress soared to £1.18bn as the house builder speeded up construction to meet demand in the capital.

“Berkeley is building on all of its sites that have an implementable planning consent and we are employing over 11,000 people directly on our sites sustaining a further 10,000 jobs indirectly in the supply chain.

“This year we have completed some 30% more homes than at the peak of the market in 2007,” said Pidgley.

Berkeley reported widespread upward pressure on build costs and restricted availability of materials and skilled labour within the supply chain but said the impact had been broadly offset by house price increases.

Operating margins rose from 20.4% to 23.1% over the year.

The group’s pipeline of future land now comprises over 11,000 plots with a potential gross margin of some £1.5bn.

Nine new sites have been added to the pipeline in the year, including six in London at Southall, Kingston, Westminster, Hornsey, Battersea and Orpington and three outside London in Bracknell, Ockham and Sevenoaks.

The house builder said it aimed to release a further £122m to shareholders in September, putting it on track to meet the first milestone in its pledge to return over £1.7bn to shareholders by 2021.

Latest news

Health chiefs issue details of £73m Multiplex hospital claim

Eleven technical problems highlighted at Glasgow’s Queen Elizabeth University campus
10 hours ago

GMI nets £95m haul of orders in first two months

Six projects secured in the North and Midlands, total close to 1m sq ft
12 hours ago

Construction firms OK with price-fixing and bid rigging

Competition and Markets Authority survey shows problems ingrained in industry
18 hours ago

Winners unveiled for £400m Essex framework

Council boosts numbers to minimise impact of possible contractor failures
16 hours ago

Unite reveals £20m cost of replacing HPL cladding

High pressure laminate cladding found on 16 buildings after ACM cladding refit completed
18 hours ago

Balfour Beatty wins £10m radium clear-up job

Radium from scrapped second world war aircraft being washed up at Dalgety Bay
15 hours ago

£1bn London Bankside Yards phase 2 approved

Major second phase of five buildings clears planning
19 hours ago

Graham to start £40m new M11 Harlow junction

Work to start on delayed 7a junction this spring
19 hours ago

Steel and cladding packages awarded at Paddington Square

Wins for William Hare and Focchi as Mace agrees £350m price to complete project
2 days ago

Willmott Dixon on call for £21m fire station

Planning to go in this spring for new training complex in West Sussex
2 days ago

Costain to offer clients low-carbon option in bids

Decarbonising option to be pitched to all clients from 2023
2 days ago

Derwent advances zero carbon building target by 20 years

New business model will involve turning brown buildings green
2 days ago

New watchdog to clamp down on shoddy building work

Independent Ombudsman given wide-ranging powers to protect homebuyers
2 days ago

Insurer warns hot work fire claims have spiked

Call for thermal imaging cameras to be used on site to combat rise in hot work fires
2 days ago

Construction nearly double size of official figures

Industry's real vital statistics put it above manufacturing
3 days ago

Spie fined after child killed by overhead power pole

Court hears how pole rolled down embankment and crushed 12-year-old
2 days ago

Eye-catching Newcastle office plan

Ribbon-like office scheme will be built near the Gateshead Millennium Bridge
3 days ago

Gilbert-Ash wins £26m Brunel Uni job

New teaching block to be built at Uxbridge campus
3 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

Contractor rethink on delayed smart motorway jobs

Fears grow Costain and Galliford Try's north west smart motorway projects will be rebid
3 days ago

Harry Fairclough Construction ceases trading after 120 years

150 staff made redundant at Warrington contractor
6 days ago

L&Q names new line-up of facade specialists

Bid races start for mechanical and electrical specialists
3 days ago

Sisk wins £21.5m deal to upgrade Leeds Corn Exchange area

Work to start in June on improving transport routes
3 days ago

Strucktor lands M&E package at £460m Raffles hotel

Specialist bags major win from Ardmore on Whitehall conversion job
6 days ago
STRUCKTOR UK

Construction work stops on another Elliot Group tower

Work suspended on £70m The Residence in Salford
7 days ago

Costain Welsh road job £100m over budget and two years late

Row simmers with Welsh Government about liabilities for cost overruns
7 days ago

London super sewer passes halfway point

Two further TBMs to be launched this year for east part of 25km drive
6 days ago

Entire facade of wind damaged tower to be strengthened

Major remedial programme planned after three cladding panels blown-off
6 days ago

BAM trading steady after second half uplift

Rise in profit at BAM Construction offsets fall at BAM Nuttall civils arm
6 days ago

Plan in for £30m East London ice rink

Twin pad ice skating centre will be biggest in southern England
6 days ago

Contractor services