Builder Berkeley's results highlight London's housing crisis

On the back of bumper profits, posh housebuilder Berkeley Group isn’t the first place you’d expect to find evidence of serious problems with what's going on, or rather what's not going on, at Westminster.

But if you take a look at its results, you’ll find it.

While Berkeley is doing very nicely thank you, it has highlighted a sharp drop in the number of new homes being built across the capital.

Now, the most pressing need in London is clearly for more social housing, as opposed to the posh apartments that Berkeley builds, which are too often bought by overseas investors.

But that 30 per cent figure covers the entire market, and when set against a backdrop of a rising population and a severe housing shortage, such a slowdown represents a serious problem.

So why is it happening? Berkeley highlights a range of issues, some of which have also been raised by its peers, and at least some of which it raises through self -nterest.

They include high levels of stamp duty, and taxes generally, difficulties with mortgages, planning regulations (and under resourced planning departments) and of course, the elephant in the room (and the reason that we’re only getting one Queen’s Speech at Westminster for the next two years): uncertainties created by Brexit.

The Conservative Party’s ruinous obsession with that – in fact, its ruinous obsession with Europe generally – is what has brought us to this juncture, and it will likely mean that the issues raised by Berkeley, some of which warrant consideration, won't get it.

That is because Brexit will utterly dominate the business of government for the next two years, and probably beyond that, with the situation exacerbated by the weak, divided and incompetent administration that will take control of the process.

London’s stalled market for desperately needed new builds will just have to wait. As for all those promises to oversee the building tens of thousands of new homes made by that Government? They'll also have to wait along with many other issues besides.

Don't worry about Berkeley. It will manage just fine. It made £812.4m, up 53 per cent, and has a nice land bank. Booted out of the FTSE 100 last year after shareholders panicked about the London property market, its shares have since made a roaring recovery and no wonder.

Assuming it can still find builders (half of its London staff are from the EU) it will continue to to build and it will continue to hit its forecasts. Having been responsible for 10 per cent of the limited number of new social housing being put up in London – in addition to all those posh flats – that’s to be welcomed.

But the wider problem will remain. And don’t forget, the shortage of social housing, and housing generally, is not unique to London. It extends throughout Britain. You know who to blame when it gets worse.