Berkeley, the homebuilder and urban regeneration specialist is benefitting from overseas bargain hunters. This is a welcomed change during these challenging times.

Equity rich foreign investors have been lured by a weak pound and attractive pricing to developments in the urban sector and even other less populated areas. Berkeley has been focusing on developing properties in London and the South-East area of England. Movement of properties within these areas has enabled Berkeley to prosper even during economic downturn.

Managing director Rob Perrins said the firm has also benefited from the not so distant arrival of the 2012 Olympics and the change in government at Westminster. "Our location helps a lot; London has the Olympics coming, it’s got the business sector," he said. "Everyone thought businesses would relocate, but the coalition is a lot more business-friendly. That’s a very good start for us."

Perrins also mentioned that 30 per cent of investors are from outside the UK. Historically, 12 per cent is the norm.

Berkeley, based in Cobham, Surrey, has urban development outside the UK capital, including Portsmouth’s £200m regeneration project at Gunwharf Quays. They said the housing market around the London area is gaining stability and sales prices were ahead of targets set last year.

Berkeley has decided to not pay a dividend, but instead to focus on land investment which they are estimating to grow this year by at least 10 per cent.

One analyst at KBC Peel Hunt said that some had expected at least a 10p dividend while realistically Berkeley will take the next five years and hand back potentially sizeable sums.

The new government’s emergency Budget contained no nasty surprises, so homebuilders are breathing a sigh of relief, although optimism is being held in check due to the continuing possibility of economic gloom and rising unemployment.