Berkeley Group enters FTSE 100

Berkley Group made pre-tax profits of £539.7m in the year to April, a 42% increase on the £380m recorded the previous year.

Rishi Passi, chief executive of unregulated bridging and development lender Oblix Capital, said: “House builder Berkeley Group’s promotion to the FTSE 100 sets the tone for the rising fortunes of many in the property market, with London developer Derwent London another contender looking like it might soon follow the new entrant.

“In London and the South East, house builders are riding a wave of high demand, as attractive mortgage rates and rising wages continue to drive confidence in the construction of new homes. But house prices continue to rise across the country, with regional cities in the South such as Oxford, Bristol, Portsmouth and Southampton also coming close to double digit growth.

“Further North, the likes of Liverpool, Glasgow and Belfast, are still seeing average prices catch up on 2007, suggesting they have plenty more fuel in the engine, and could soon approach the buoyancy seen in the South.”