Berkeley Group, one of the UK’s biggest housebuilders, has cautioned the government that introducing another cladding tax will place “significant pressure” on its aim of delivering 1.5 million homes by the end of 2029.
The warning follows industry-wide frustration over mounting costs linked to the remediation of unsafe cladding, first highlighted by the Grenfell Tower tragedy in 2017.
Developers are already contending with a 4 per cent surcharge in corporation tax and the imminent building safety levy—estimated to raise up to £3 billion. The government insists the new charge will speed up necessary repairs, but many property firms fear that further costs and regulations will slow construction at a time when the nation urgently needs more homes.
In its trading update on Friday, Berkeley voiced alarm at the “extent and pace of regulatory changes” in recent years. Citing the soon-to-be-introduced levy, the company said these “incremental” adjustments could undermine the delivery of new homes. That view is echoed by Jennie Daly, chief executive of Taylor Wimpey, who recently warned that yet another “costly requirement” will make it challenging to build quickly and at scale.
Founded in Surrey in 1976 by Tim Farrer and Tony Pidgley, Berkeley built 3,521 homes in its most recent financial year—mostly in and around London. Under chief executive Rob Perrins, it has also been moving further into the rental sector with plans to manage up to 4,000 homes.
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