Russ Mould, investment director at AJ Bell, said: “Berkeley has a longstanding reputation for being adroit at calling the ups and downs of the property market, particularly under the leadership of its late founder Tony Pidgley.
“In that context, the moves the company has announced today will make others sit up and take notice.
“New land acquisitions are on hold.
“Berkeley plans to prioritise profitability and maintaining balance sheet strength as it looks to navigate what it clearly expects to be a difficult period for the industry.
“While it’s Berkeley taking the hit today as investors react to what is undoubtedly a downbeat statement, there will be genuine concern among those of its counterparts who aren’t able to pull the same levers or lean on the same inherent strengths.”
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