Berkeley Group says trading stable despite unsettled UK housing market
(Alliance News) - Berkeley Group Holdings PLC on Friday said trading has been in line with the cautious outlook it released in June, as the war in the Middle East and political uncertainty in the UK has hampered the housing market.
The Cobham, England-based housebuilder, in a trading update ahead of its annual general meeting later in Friday, said it expects pretax profit to be slightly higher in the first half of 2026 than in the second half, as it said buyers may delay deals until after the UK government budget in October and any election uncertainty clears.
"While Berkeley is receiving good and stable levels of enquiries, the uncertainty and volatility in the market means that customers without an immediate need to move and readily available liquidity remain more cautious to commit, a position similar to that reported with our full year results in June," the company said.
Berkeley expects net cash of around GBP250 million at the end of its financial half-year in October. Net cash was GBP342 million at October 31, 2025.
The company said its cash flow position has been bolstered by its recent decision to reduce commitments to new building project phases and to pause land investment, but it also reflects the level of shareholder returns and investments in its core business and its build-to-rent platform.
In the first four months, Berkeley said it had returned GBP60 million to shareholders through the buy back of 1.7 million shares at an average price of GBP34.18. Its current target is to return GBP640 million between October 2025 and September 2030.
Berkeley said it was "encouraged" by the UK government's recognition of the importance of homebuilding in driving economic growth across the nation and urged the government to reform the current stamp duty regime to meet its target of 300,000 new homes a year and make housing more affordable.
The company said it was making good progress in advancing its sites through the reformed planning system in London but said that the "pro-development stance seen in policy making" needed to be transferred into implementation.
Berkeley shares were down 0.5% to 3,278.00 pence in London on Friday.
By Camilla Borri, Alliance News reporter
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