Berkeley Group has reported a resilient performance in its latest financial update despite what it described as a difficult trading backdrop.
The housebuilder said its Berkeley Group half-year results showed profits before tax of £254m for the six months ending 31 October 2025. This represented an 8 per cent fall compared with the same period last year, reflecting continued pressure from the wider macro economic environment.
Despite the drop in profits, the Berkeley Group half-year results showed a slight improvement in operating margin, which rose to 20.8 per cent. The company also reported growth in its pipeline, with 14,000 plots secured, an increase compared with its position at the previous half-year point in April.
Rob Perrins, executive chair at Berkeley, said the performance highlighted the company’s operational strength.
“Berkeley’s highly creditable performance reflects exceptional operational execution, 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 £450m for this year and a similar level for FY27, along with our target for a strong net cash position.”
He said customer interest remained positive during the period, despite challenging conditions.
“Customer 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.”
Mr Perrins noted that sales reservations had been affected by uncertainty ahead of last month’s Budget.
“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.”
Looking ahead, he said the longer-term outlook, particularly in the capital, appeared more encouraging.
“While 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.”
Mr Perrins concluded by thanking staff across the business.
“On behalf of the board, I want to express our sincere thanks to the entire Berkeley team for their commitment, creativity and constant attention to detail.”
