In the six months to 31st October 2025, Berkeley Group revenue and pre-tax profit were both down by less than 8%.
Revenue was down 7.8% at 拢1,179.5m for the half-year and profit before tax was down 7.7% at 拢254.0m.
However, it is not plain sailing.
Chief executive Richard Stearn addressed the challenges facing housing developers and voiced fears that any more delays imposed by the Building Safety Regulator risked a skills exodus from the industry.
He said: 鈥淏erkeley has experienced highly competitive tendering across most trades during the period, as our supply chain looks to secure near-term work in an environment where housing and wider construction activity remain subdued, particularly in London. These conditions have offset the inflationary impact of increases to the National Living Wage and employers' National Insurance contributions, and with material prices stable, build costs remained flat during the half year.
鈥淲e expect these competitive market conditions to continue into 2026, with build costs likely to remain broadly unchanged. However, we remain mindful of ongoing regulatory changes, including the Building Safety regime and Gateway 2 requirements, and recognise that prolonged weakness in construction activity increases the risk of skills and experience leaving the industry.聽 A lack of new project starts and delays to live projects is placing financial strain on the supply chain, and Berkeley continues to work closely with its trusted partners to maintain delivery capability.鈥�
Executive chair Rob Perrins said the Berkeley鈥檚 finances were essentially in rude health. "Berkeley has delivered 拢254m of pre-tax profit for the six-month period.聽 Net cash is 拢342m, after 拢132m of share buy-backs, and net asset value per share is up 5% to 拢37.63,鈥� he said. 鈥淭his highly creditable performance reflects exceptional operational execution in a very challenging macro-economic and regulatory environment, the quality of our market-leading homes and the strength of our unique long-term operating model. We remain on track to meet our pre-tax profit guidance of 拢450m for this year and a similar level for FY27, along with our target for a strong net cash position.鈥�
He added: 鈥淐ustomer interest has been good in the period, evidenced by the level of enquiries and leads we are experiencing. However, the market has remained constrained by higher than anticipated interest rates and macro-economic uncertainty.聽 The value of underlying sales reservations was stable for the first four months of the period but has been more subdued since, due to speculation and uncertainty leading up to last month's budget.
鈥淲hile near-term sentiment remains cautious, the long-term outlook is more positive; particularly in London, where undersupply is compounding and affordability is gradually improving with falling interest rates, improved mortgage availability, strong wage growth, and stable pricing. With the budget uncertainty behind us, now is a good time for customers with the ability to buy, to do so, and take advantage of the prevailing market dynamic.鈥�
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