The Berkeley Group has published its latest trading update, covering the four-month period from 1st May to 31st August 2025.
The housebuilder reported stable performance in line with the same period last year and confirmed it remains on course to meet its full-year pre-tax earnings guidance of £450 million for the year ending 30th April 2026. Approximately 85% of this profit is already secured through exchanged sales contracts.
The company anticipates an even distribution of profits between the first and second halves of the financial year, subject to the timing of development completions.
During the period, Berkeley returned £121 million to shareholders through the repurchase of 3.25 million shares at an average price of £37.20 each.
With the completion of its 2011 shareholder returns programme, Berkeley has now delivered the initial £260 million of its £2 billion minimum shareholder returns commitment under its Berkeley 2035 strategy. The next milestone targets a further £640 million in returns by 30th September 2030, to be delivered through a combination of dividends and share buy-backs.
The company expects to hold net cash of approximately £300 million by the end of the financial year, reflecting ongoing shareholder returns, investment in its build-to-rent portfolio, and land acquisitions. However, net cash at the half-year point may fall slightly below this figure, depending on the timing of completions and shareholder distributions.
The company also highlighted what it described as the government’s ‘positive stance’ on planning reform, which it said ‘demonstrates its determination to drive national growth through new housing delivery’.Â
However, Berkeley also pointed to the latest data published by MHCLG, the GLA and the independent research agency, Molior, which indicates a continued decline in new housing starts in London to levels not seen since the Global Financial Crisis over 15 years ago.Â
“This is due to a confluence of well-documented regulatory, economic and market factors,” the company said in a statement. “The government is now increasingly focused on addressing the regulatory and viability challenges facing London’s housing industry, which we are confident it can resolve through collaboration with the sector and applying the same single-minded determination to deliver the necessary change that has been so successful in driving its wider planning reforms.”Â
Berkeley firmly believes that the focus must now be on de-regulation, resolving the challenges of the Building Safety Regulator and not increasing taxation over and above the Building Safety Levy introduced in the period; be this through the changes to Landfill Tax, currently being consulted upon, or further property taxation, as this will deter investment.
The company added: “Berkeley’s flexible capital allocation framework balances near-term volatility with the investment of free cash flow in areas that will drive long-term shareholder value, namely through maximising the value and potential of our land holdings and our BTR platform.
“Moreover, Berkeley’s business model can be a major catalyst for growth, delivering hugely positive outcomes for communities, the economy and environment through ambitious brownfield regeneration projects. We are committed to working with all levels of government and other stakeholders to unlock this potential for the benefit of all.”
Read the orginal article: https://propertyindustryeye.com/property-giant-reports-stable-profits-but-calls-for-deregulation/
