Housebuilder says government needs to speed up s106 agreements and gateway 2 sign-offs
Berkeley Group has reported a 5% drop in pre-tax profit as it announced a change of leadership.
The housebuilder, in its results for the year to 30 April reported a pre-tax profit of 拢529m, which is in line with its previous guidance of 拢525m.
But it is down on the 拢557m posted the previous year, with profit from joint ventures falling from 拢65.6m to 拢14.7m as it developments were in the south east of England instead of London.
The group sold 4,047 homes, 15% up on the 3,521 sold the previous year, while turnover rose slightly from 拢2.46bn to 拢2.49bn.
Berkeley also announced today that long-time chief executive Rob Perrins will move to the executive chair role in September, succeeding Michael Dobson who is standing down after three years.
Richard Stearn, group finance director, will take over as chief executive.
The group also revealed it has transferred the first four buildings comprising 762 homes into its new build-to-rent platform, which it is aiming to build into a 4,000-homes rental portfolio over 10 years.
The homes are at Alexandra Gate, Haringey, Kidbrooke Village, Greenwich, Edin Grove, Staines, and Horlicks quarter, Slough. It announced the as it expects sales to remain 鈥渟ubdued鈥�
The group鈥檚 pipeline has dropped from 13,500 to 12,000 homes.
Perrins said Berkeley is 鈥渇ully committed to the government鈥檚 housing-led growth agenda鈥� but called for 鈥渇ocused action to accelerate the completion of Section 106 agreements鈥�.
He added the government needed to 鈥渋mprove and speed up the 黑洞社区 Safety Regulator鈥檚 new gateway approval system鈥�, which has led to widespread delays to schemes.
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