Berkeley said that its home transaction volumes had fallen to “around a third lower” than a year ago.
“While we have seen a slight uptick in recent weeks, a meaningful recovery will require a sustained improvement in consumer confidence and stability in the wider macroeconomic environment,” added one of the country’s largest housebuilders in a first-half trading statement.
It pointed out: “We therefore welcome the government’s mission for growth and its brownfield-led housing agenda to resolve the issues in the planning system and deliver 1.5 million new homes over the next five years.
“Indeed, the strength and tone of government’s housing commitments have already galvanised the planning system.”
The firm’s statement comes a day after Prime Minister Keir Starmer described his administration’s plans to build 1.5 million homes over the next five years as “ambitious”, adding it would be “an almighty challenge” to hit that target over the next five years.
Over the previous five years, the country built around 1 million homes.
Berkeley, also illustrated the scale of the “challenge,” pointing out that housing starts in London fell to just 8,450 in the year to the end of June, according to the latest quarterly statistics from the housing department.
It added: “This compares to the government’s newly identified annual target of 80,000 for the capital.”
But the builder said: “We are now working closely with all levels of government to ensure that this positive momentum quickly translates into economically viable planning consents to unlock greater investment and delivery on the ground, but this will take time.
“We also remain alive to the very significant changes to building regulations and the establishment of a new industry regulator. This necessary change brings uncertainty as it beds in and with it the risk of delays and additional costs.”
The company posted pre-tax profits in the half-year to October of £275m, down 7.7% from a year ago.
However, the business said it was on track to hit profit guidance for 2025 and 2026, and unveiled a new 10-year strategy, which includes plans to spend £2.5bn on land.
Berkeley shares were down 0.7% to 4,138p in late afternoon trading.