Berkeley says trading stable, welcomes UK's stance on planning reform

(Alliance News) - Berkeley Group PLC on Friday said it welcomed the UK government's "positive" stance on planning reform, amid stable trading.

The Cobham, England-based housebuilder said trading in the first four months of its financial year has been "stable", and confirmed it is on track to report pretax earnings in line with its GBP450 million forecast for the financial year ending April 30, 2026, and down 15% from GBP528.9 million in financial 2025.

The expected profit fall comes as the company invests in its Build to Rent platform, part of its Berkeley 2035 strategy.

Berkeley said it has already secured 85% of its guided pretax earnings through exchange sales contracts, and that the firm remains on target to achieve a similar level of profit in financial 2027.

Berkeley anticipates pretax profit to be weighted "broadly evenly" between the first and second half of the year, subject to timing of completions.

The company returned GBP121 million to shareholders during the four months to August 31 via the acquisition of 3.3 million shares at an average price of GBP37.20 each.

Berkeley has now reached its first target for GBP260 million returned to shareholders under the Berkeley 2035 strategy, which was launched in December.

It now targets a further GBP640 million by September 2030, to be made via both share buybacks and dividends. Berkeley targets net cash of around GBP300 million at April 30, 2026.

The firm said: "The government's positive stance on planning reform demonstrates its determination to drive national growth through new housing delivery and has been greatly welcomed by Berkeley and the industry."

Berkeley added: "The government is now increasingly focused on addressing the regulatory and viability challenges facing London's housing industry, which we are confident it can resolve through collaboration with the sector and applying the same single-minded determination to deliver the necessary change that has been so successful in driving its wider planning reforms."

Berkeley shares rose 1.4% to 3,632.00 pence each on Friday morning in London.

By Tom Budszus, Alliance News slot editor

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