Homebuyers have flocked to London and the South East in the past year to snap up cheaper properties, according to Berkeley Group.
The housebuilder reported a 46 per cent rise in sales in the 12 months to the end of April as the housing market recovery picked up pace, with 2,201 transactions over the year compared with 1,501 in the previous 12 months.
However, the average sale price was down from £395,000 to £263,000, resulting in a drop in revenue and pre-tax profits at the group. Pre-tax profits for the year to the end of April were £110 million, down 8 per cent from £120 million a year ago, while revenue declined by 12.4 per cent to £615 million Nevertheless, the fall was smaller than expected, which Berkeley attributed to a boost from foreign investors who have piled into London property because of the weak pound.
However the group said that while house price growth had stabilised, the aftermath of the financial downturn would continue to affect the economy and the sector. As a result, Rob Perrins, the managing director, said that Berkeley Homes would continue to focus on London and South East, where there is more demand for property.
He also warned that government cuts could hit housebuilding, giving examples of its own regeneration sites, Kidbrooke in South East London and Royal Arsenal, in Woolwich, on which work may have to slow if public funding is withdrawn.
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Berkeley Homes, which has a landbank of 28,099 plots worth £2 billion, said yesterday that it was focused on buying more land. It has bought 2,200 new plots on 20 sites in the past 12 months, many in London hotspots including Fulham, Putney and Wimbledon.
Mr Perrins said that the sale of government assets, including land, would yield more opportunities over the coming months.
The group refinanced in November 2009 and said that it had a £300 million facility in place, as well as £53 million of site-specific loans. It will not pay a dividend.