Berkeley Group has seen a 4.6% rise in pre-tax profit in its latest half-year trading update, but said that it would pause investing in new developments until market conditions improved.
Berkeley’s chief executive, Rob Perrins, said that operating environment remained “volatile and unsupportive”, so the developer will continue to keep its focus instead on existing sites which had helped it achieve its strong position.
In the six months to the end of October, Berkeley’s pre-tax profit increased from £284.8million to £298million year on year, almost a 5% rise. Berkeley also extended its earnings guidance to include the three years up to the end of April 2026, in which it is targeting a minimum of £1.5billion in pre-tax profit. Its previous target up to the end of April 2025 stood at £1.05billion. The group also said that it remains on track to deliver £283million to its shareholders by September 2024.
Rob Perrins said: “We are wholly aligned with the ambition to build more quality affordable and private homes where they are most needed, and to play our full part in meeting the country’s net zero target.”
“However, the burden of achieving this, at a time when the economy is adjusting to more normal conditions following a decade of zero interest rates, must be recognised and priorities set, as housing cannot continue to cross-subsidise at these levels, without increased public funding.”
Berkeley’s update named a number of issues which have contributed to the uncertain environment, including changes to national and local planning policy, second staircase rules, updates to building regulations and the introduction of the residential property developer tax among others factors.
