It’s a bold move from one of the UK’s biggest housebuilders, and it’s a clear sign that they’re backing the government’s ambitious housing plans. Berkeley Group has announced plans to build 10,000 new homes over the next five years, a major boost for the sector and a major commitment from the company.

Scaling Up: A Massive Increase in Output

This isn’t a small increase in production. Berkeley is already a major player in the housing market, delivering over 3,900 homes last year. This new plan represents a significant jump in their output, showing just how confident they are in the future of the market.

The Government’s Big Housing Push

The move comes as the government aims to deliver 1.5 million new homes during this Parliament. Berkeley’s decision to ramp up production is a clear signal of support for this ambitious target, and shows their belief that there’s a strong market for new homes.

Berkeley’s Five-Point Plan for Success

To make this ambitious plan a reality, Berkeley has outlined a five-point plan, involving a major investment in both existing and new projects:

1. Speeding Up Existing Projects: The company will pump more cash into existing projects to get them built faster. This is a smart move, as it allows them to quickly increase their output without waiting for new sites to be developed.

2. Securing New Sites: Berkeley is also planning to secure planning permission for ten new large-scale regeneration projects. This includes the massive Bromley by Bow Gasworks development in London and the Ladywood regeneration in Birmingham. These projects will be key to delivering the new homes needed.

3. A £1 Billion Built-to-Rent Gamble: Berkeley is going all-in on the “Built-to-Rent” market, a sector where landlords build entire blocks of apartments specifically for renting out. This is a new area of investment for them, and they’re putting £1 billion on the table to create 4,000 new rental homes.

4. Land Investment is Back: After a two-and-a-half-year break, Berkeley is getting back into buying up new land for development. This shows their confidence in the market and their willingness to invest for the long term.

5. A Focus on Training: Berkeley is also making a commitment to training, ensuring that 5% of its growing workforce is involved in education and training programs. This is a smart move, ensuring that they have the skilled workers needed to build these new homes.

Challenges and Collaboration:

Berkeley’s CEO Rob Perrins says the company is aware of the challenges ahead. He stresses the importance of working together with local communities and government agencies to get these projects off the ground. This involves dealing with complex regulations and finding solutions that benefit everyone involved.