UK Housebuilder Berkeley Halts Land Purchases, Hiring Amid Iran War Fallout

Berkeley, one of the UK's largest housebuilders, has announced it will stop buying new land and hiring new staff as the company grapples with the fallout from the ongoing conflict in Iran and its impact on the British property market.

The London-focused builder cited geopolitical volatility and reduced potential for interest rate cuts as factors weighing on its business, leading the company to implement cost-cutting measures. This includes halting the acquisition of new development land and pausing hiring across the organization.

The announcement comes as Berkeley's share price has plunged, reflecting the broader uncertainty surrounding the UK property market in the wake of the Iran war. The conflict has introduced significant economic and political instability, which has in turn dampened consumer confidence and demand for new homes.

"Geopolitical volatility and the reduced potential for interest rate cuts are weighing on our business," said a Berkeley spokesperson. "As a result, we are taking proactive steps to cut costs, including pausing land acquisitions and new hires, to navigate this challenging environment."

The announcement from Berkeley is the latest sign of the property sector's struggles in the face of the Iran conflict. Other major UK housebuilders have also reported slowing sales and dampened outlook as the fallout from the war ripples through the economy.

Analysts warn that the housebuilding industry could face a prolonged downturn if the geopolitical tensions and associated economic uncertainty persist. For now, Berkeley is focused on weathering the storm through prudent cost management and a cautious approach to growth and expansion.

"We are taking a very careful and considered approach to navigate this challenging period," the Berkeley spokesperson added. "Our priority is to protect the business and ensure we are well-positioned to capitalize on any market recovery in the future."