Property developer Berkeley Group have warned that Brexit uncertainty and tax changes are putting the London market under pressure.
In a trading update the group said: “The London market continues to be adversely impacted by both uncertainty around the terms and implications of Brexit and the changes in recent years to SDLT [stamp duty land tax] and mortgage interest deductibility.
Despite this the group said that they anticipated that their profits are on track and will “be at least as strong as 2016/17”.
They added that they were on course to achieve at least £3bn of pretax profit in the five years to the end of April 2021.
Their latest financial results showed pre-tax profits before £812.4m.
New constructions taking place in London are 30 per cent lower than 2015, the group said.
Berkeley builds over 10 per cent of the capital’s new homes making London one of its key market.