Berkeley hails a return to luxury

WITHIN hours of a prestigious penthouse flat at St George's Wharf next to the MI6 building on the Thames at Vauxhall going on the market, three businessmen each separately offered the full asking price of £2.95m for it.

The flat, part of the development by city centre homes specialist Berkeley Group, was eventually sold to someone who was able to complete the deal within seven days.

Berkeley managing director Tony Pidgley believes the swift deal is an indication that the market for multi-million pound new properties has recovered after a setback in the wake of the events of 11 September.

More modestly priced homes are also selling well for the group. Pidgley is confidently predicting the average price of a Berkeley home will rise to £300,000 in the second half of the year. Average prices fell to £271,000 for the 1,318 homes sold in the six months ending October, from the £290,000 price of the 1,553 homes sold in 2000.

This was due to Berkeley having a different and lower priced mix of homes rather than an overall price fall.

Pidgley is sceptical about Government strictures requiring housebuilders to provide between 25% and 50% of their land for affordable housing. He believes it will drive up land prices creating a land supply problem.

Pidgley said: 'The shortage of land supply has kept prices relatively firm.'

Berkeley's interim pre-tax profits rose 13.5% to £85.1m. The interim dividend is boosted 11.1% to 4p.