| LONDON, Sept 2
LONDON, Sept 2 UK housebuilder Berkeley Group
Holdings Plc has halted construction at a 20
million-pound ($27 million) luxury housing project in London, it
said on Friday.
Berkeley Group declined to say why it stopped construction
last month at the Barnes Village scheme in southwest London,
where homes were expected to sell for up to 5 million pounds,
local residents said.
But other housebuilders, estate agents and analysts have
said they expect the vote to leave the European Union to hit the
UK real estate market, especially in London which is fuelled in
part by European purchasers.
It's not unusual for builders to hold off starting
developments until market conditions are optimal. However,
it is rare for projects to be stopped mid-build, said Clyde
Lewis, analyst at brokerage Peel Hunt, who covers Berkeley.
Basements and ground floors had already been built at the
"The London market has got a bit tougher post-Brexit," he
said, referring to the June referendum on EU membership.
"The value end of London is still selling OK but more
expensive stuff is selling slow," he said.
Berkeley Group's cash pile dropped by more than 300 million
pounds last year but the company was still ungeared at the end
of its financial year in April.
($1 = 0.7530 pounds)
(Reporting by Tom Bergin; Editing by Greg Mahlich)