Pre-budget ‘uncertainty’ hit sales in half-year, says Berkeley

Berkeley’s executive chair has blamed pre-budget uncertainty for a drop in sales reservations in its latest financial numbers.

Results for the six months ended 31 October 2025 showed the housebuilders revenue during the period was £1.18bn, up 7.8% from £1.28bn.

Meanwhile, the firm recorded pre-tax profit of £254m, down 7.7% from £275m.

Rob Perrins, executive chair, lauded the performance as “highly creditable” given the “very challenging macro-economic and regulatory environment”.

He said the firm remained on track to meet pre-tax profit guidance of £450m for the year and a similar level for 2027.

Perrins said that there had been “a number of significant policy initiatives in the period of which we are very supportive” for housebuilders in London, including the Greater London Authority and housing ministry’s Homes for London package.

“At the same time, it should be recognised that since 2014 successive Governments have seen property ownership as a source of increased revenue and that, coupled with higher corporate and development taxes, this has constrained investment in the delivery of new homes,” he said.

According to the chair, customer interest was “good” in the period, but “the market has remained constrained by higher than anticipated interest rates and macro-economic uncertainty”

“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,” he added.

Overall, sales ended around 4% behind the equivalent six-month period.

Berkeley delivered 2,022 homes during the period, plus 82 in joint venture. This was down on the equivalent period the year prior, when it delivered 2,103, plus 177 in joint venture.

The firm’s build-to-rent platform, Berkeley Living, launches in early 2026 with Foundry Yard at Alexandra Gate welcoming its first residents in the spring.