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Interest rates hit Berkeley

Profits at Berkeley fell off today as the house builder and developer suffered from interest rate hikes and low demand.
Berkeley's pre-tax profits were £202.9 million for the year to April - short of analysts' expectations and down 11.7 per cent on last year's £229.8 million.

Turnover also fell 16 per cent to £1.07 billion from £1.27 billion last time.

Chairman Roger Lewis said: 'Demand for homes has reduced

following the five sequential rises in interest rates and the resultant reduced affordability which restricts new entrants into the market.

'This is offset by the constraints in housing supply as a result of planning delays and the overall complexity of delivering urban regeneration schemes.'

Berkeley sold Crosby Homes to Australian company Lend Lease for £261 million yesterday.

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