Berkeley Group has reported strong a performance amid a challenging economic environment.

The group, one of London’s biggest housebuilders, released its interim results for the six months ending 31 October 2023.

It said profit before tax is up 4.6% to £298 million despite the slump in the sale of new homes.

The group said sales reservations were down by around a third on last year reflecting interest rate and economic environment. However, prices have remained firm. 

Berkeley, which specialises in building large, urban blocks on former industrial land, has extended its earnings guidance by a year to cover the three years ending 30 April 2026.

It is targeting to deliver at least £1.5 billion of pre-tax profit (previously £1.05 billion in two years to 30 April 2025). 

The group figures released its interim result today (8 Dec). Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, said the group has delivered a “solid performance in a difficult trading environment”. 

He said: “The strength of Berkeley’s operating model, which converts large and complex urban regeneration sites into beautiful homes, is shining through. However, the planning and regulatory environment remains extremely complex meaning Berkeley is focusing on existing sites rather than committing to new schemes. 

“Given the chronic housing shortage, the government should take a long hard look at whether it could do more to incentivise urban regeneration. The message from Berkeley is clear – without changes to the planning and regulatory environment, it won’t invest. That’s not good news for anyone, least of all London’s future home buyers.”