Berkeley Group Holdings has called on the government to support investment in the London housing market with planning reform and lower taxes in a trading statement released on Friday.
The group is highly weighted to London and the South East – an area of slowing house price growth as highlighted by the latest Halifax House Price Index.
– Advertisement –
Nonetheless, Berkeley Group confirmed it remains on track to achieve £450 million pre-tax earnings for FY2026, with 85% already secured through exchanged contracts.
The group expects profits to be evenly split between both halves of the financial year and targets net cash of around £300 million by April 2026.
Although the UK housing market has slowed, Berkeley Group remains a highly cash-generative firm and is committed to returning cash to shareholders.
The housebuilder highlighted it had returned £121 million to shareholders in the first four months through share buybacks at an average of £37.20 per share.
The company completed its 2011 shareholder returns programme and the first £260 million of its £2 billion Berkeley 2035 strategy target. A further £640 million will be returned by September 2030 through buybacks and dividends.
Like all housebuilders, Berkeley referenced government planning reforms but highlighted concerning data showing London housing starts have fallen to levels not seen since the global financial crisis.
The company called for deregulation and warned against increased taxation beyond the Building Safety Levy, citing regulatory and viability challenges deterring investment.