Berkeley Group (LSE:BKG) delivered a solid financial performance during the year despite challenging market conditions, reporting pre-tax profit of £451.4 million and increasing its net cash position to £363 million. Net asset value per share climbed 9% to £39.17, while ongoing share buy-back activity continued to return capital to shareholders. However, operating margin eased to 18.7% and forward sales declined, prompting management to place greater emphasis on cash preservation, operational efficiency and maximising value from its existing land portfolio rather than pursuing significant new land acquisitions.
The housebuilder completed 4,203 homes during the period, with around 90% constructed on brownfield regeneration sites. Berkeley also contributed £530 million towards affordable housing, infrastructure and community investment, underlining its long-standing focus on urban regeneration and sustainable development.
Management expressed concern over the state of London’s housing market, arguing that a combination of elevated taxation, increasing regulation and lengthy planning and building-safety approval processes is severely restricting new housing supply. The company noted that housing delivery in the capital is currently running at less than 10% of official targets.
To address these challenges, Berkeley called for measures including reductions in Stamp Duty Land Tax (SDLT), full implementation of the Homes for London programme, faster planning decisions and additional resources for regulatory bodies. The group believes such reforms would help unlock investment, increase housing delivery and support long-term growth across London’s residential property sector.
Despite near-term market headwinds, management remains focused on maintaining financial discipline while positioning the business to benefit from any improvement in planning conditions and housing supply policies.
More about Berkeley Group
The Berkeley Group Holdings plc is one of the UK’s leading residential property developers, with a primary focus on London and the South East of England. The company specialises in large-scale urban regeneration projects and the redevelopment of brownfield land, creating mixed-use communities that incorporate housing, commercial space, infrastructure and public amenities. Berkeley is recognised for its emphasis on sustainable development and its significant contribution to affordable housing delivery in some of the UK’s most supply-constrained markets.
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