British homebuilder Berkeley flags inflation concerns but sticks to profit outlook

Adds company comment, background

March 11 (Reuters)British home builder Berkeley BKGH.L pointed to continued strong demand in an undersupplied housing market on Friday, while flagging concerns about accelerating inflation, supply chain disruptions and coating issues.

The Cobham-based company said it remains on track to meet its earnings outlook for the year to April 30 and expects forward sales to top £1.70 billion ($2.22 billion). dollars) at the end of fiscal year 2022.

The UK property market remained resilient even after a tax holiday expired in September, continuing its momentum into 2022 with top players including Barratt BDEV.L and khaki PSN.L expecting strong market activity this year.

“Berkeley has continued to trade vigorously since its half-year, with the value of underlying sales bookings remaining slightly above pre-pandemic levels,” the FTSE 100 company said in a statement.

Rising inflation and supply chain issues caused by the pandemic have troubled UK businesses, but most major homebuilders said they were able to cope with such pressures due to the soaring real estate prices.

UK inflation rose at the fastest annual rate for almost 30 years in January and financial markets expect Bank of England interest rates to hit 2% by the end of January. end of 2022.

In January, Britain ordered homebuilders to pay around $5.4 billion to help remove dangerous coatings from buildings following a deadly 2017 fire in London that left the government, the developers and landlords at loggerheads over how to secure properties.

($1 = 0.7642 pounds)

(Reporting by Shanima A in Bengaluru; Editing by Subhranshu Sahu)

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