Berkeley shifts focus to existing pipeline as shares slide to near decade low
Berkeley Group has paused new land acquisitions and is slowing investment as it reshapes its approach to a weaker housing market and rising regulatory pressures, a move that sent its shares down 18% to their lowest level since late 2016.
The housebuilder, which is due to leave the FTSE 100 at the next reshuffle, said it still expects pre-tax profit of £450 million for the 2026 financial year, matching guidance reiterated earlier this month, alongside net cash of about £300 million.
Looking further ahead, Berkeley forecast “above” £1.4 billion of profit before tax in the four years to 2030, implying an average of £350 million a year.
Berkeley Group shares have fallen 18% after the developer warned that "unprecedented" costs and regulation are forcing it to scale back. In a blow to Labour’s housebuilding targets, the group has stopped buying new land and will slow build rates at exis... https://t.co/Tm3yDzLzmX
— The Times and The Sunday Times (@thetimes) April 1, 2026
The group said higher costs, tighter regulation and weaker consumer confidence have reduced the appeal of launching new developments. It added that it “does not believe it can make its required rate of return” on new land acquisitions.
Instead, Berkeley said it would concentrate on its existing pipeline. The company holds sites for more than 50,000 homes and a further 10,000 in the pipeline, mainly in London and the South East. It said it would seek to extract value from these holdings by “tightly sequencing” construction and “flexing the pace” of investment in its Berkeley Living build-to-rent business.
Berkeley, whose shares fell more than 624p to 2,812p, said delays linked to the Building Safety Regulator had pushed project timelines back by about 12 months, putting further strain on delivery schedules.
The UK housing market has begun 2026 with tentative price growth and improving sentiment. However, that fragile recovery is now being tested by higher costs linked to the Middle East conflict. US-Israeli airstrikes on Iran pushed oil prices sharply higher and unsettled bond markets, raising the risk that inflation proves stickier and limiting how far and how quickly fixed-rate mortgage pricing can fall as lenders’ pricing is closely tied to swap and gilt market moves.
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