London’s residential market remains constrained with the conditions for a “functioning housing market” absent in the capital and the South East, Berkeley has said in a trading update.
Although the housebuilder said that pricing has remained robust in the region due to demand for good quality homes, there are headwinds that affect all parts of the market from home movers to downsizers and investors.
In a statement, Berkeley said: “In essence, this is a market that lacks urgency and London remains constrained by high transaction costs, restrictive income multiple limits on mortgage borrowing and prevailing economic uncertainty, accentuated by Brexit.
