Berkeley expects results to be strong

In a market update, housebuilder Berkeley Group said demand for property remains strong and it expects to deliver £2bn profits over next three years

Berkeley expects results to be strong

Ian Forrest, investment research analyst at The Share Centre, explains what the announcement means for investors“In a Q3 trading update today housebuilder Berkeley Group said it expects full year results to be at the top end of expectations as underlying demand for its properties remains strong,” he said.

“However, it also revealed that reservations were 4% lower and transaction levels at the upper end of the market had been affected by the large increase in taxes over the last 18 months. Despite this, interested investors should note that the group remains on course to pay a 100p dividend in September, having paid a similar amount in January.

“This was a mixed update for investors, but for income-seekers it was reassuring to hear that the company remains on course to deliver £2bn in profits in the three years to 2017/18. This should enable it to continue the generous level of dividends.”

Berkeley & Equity Release

What Is Equity Release?

Equity release is the use of financial arrangements that provide the owner of a house, or other property, with funds derived from the value of the property while enabling them to continue using it.

How Does Equity Release Work?

Equity release is aimed at homeowners aged 55 and over. It allows you to take some of the value of your home as cash.

Home owners going to Equity Release

Many homeowners in Berkeley and the Bay Area find themselves with impressive amounts of equity, meaning the difference between what they owe on the home and what it would sell for. Experts caution, however, that tapping home equity is something a homeowner should approach carefully.

Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.
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