Inflation ‘fuels home shortage’

INFLATION and rising taxes on developers risk making Britain’s home shortage worse, according to the boss of London’s largest housebuilder.

Berkeley Group’s chief executive Rob Perrins said the number of new properties built in the capital could halve unless more was done to lessen the burden on builders.

“The last year has seen increases in taxation for all businesses and our sector in particular which has also faced further regulatory changes,” he said.

The housing industry faces a new 4pc tax on profits made from residential properties. The tax was introduced in the aftermath of the Grenfell fire to fund the restoration of buildings with unsafe cladding. Mr Perrins also complained about new carbon-related taxes.

“The restoration of a stable and predictable regulatory and taxation regime is in the interests of both businesses and government,” he said. “For without it, there is a risk the investment required to deliver much needed new homes and the transition to net zero will not come forward at the necessary pace.”

Mr Perrins’ comments came as the com- pany delivered a 6.4pc increase in pretax profits to £552m for the year ended April 30. Despite strong profits, Mr Perrins said tax pressures, combined with rising costs, were making developments “very hard to bring forward”.

Berkeley Group said it delivered 3,760 new homes in the year and an additional 872 homes through joint partnerships. It said it had delivered 10pc of London’s new private and affordable properties.

Berkeley Group’s share price declined by 3pc yesterday.