[ad_1]
\n<\/p>\n
The firm said it will largely stop buying land, warning it cannot hit required returns amid rising tax, regulation and soft sales.<\/p>\n
Instead, the developer will double down on extracting value from its existing sites and tightly control construction activity in line with demand and regulatory delays.<\/p>\n
The move comes despite Berkeley holding firm on its \u00a3450m pre-tax profit target for FY26, alongside a strong net cash position of around \u00a3300m.<\/p>\n
Berkeley said geopolitical instability and weaker expectations for interest rate cuts have already knocked back hopes of a near-term sales recovery.<\/p>\n
At the same time, the Building Safety Regulator regime is continuing to drag out delivery timelines, with Gateway 2 approvals adding around 12 months between planning and start on site.<\/p>\n
That delay is now feeding directly into programme phasing across Berkeley\u2019s schemes.<\/p>\n
The developer will now slow build-out rates, cut work-in-progress investment and sequence projects more carefully \u2014 a clear signal that contractors should expect a more staggered pipeline rather than volume growth in the short term.<\/p>\n
Berkeley said it will also flex the pace of its build-to-rent arm, Berkeley Living, despite early leasing success on its first scheme at Alexander Gate.<\/p>\n
Across the business, cost control remains central, with operating costs already cut from \u00a3178m to \u00a3150m in real terms over recent years.<\/p>\n
Looking ahead, Berkeley expects to deliver more than \u00a31.4bn of pre-tax profit over the next four years, with output weighted slightly towards 2027 before flattening out.<\/p>\n
Margins are being held in the 17.5% to 19.5% range \u2014 but only through tighter discipline on land, build rates and capital allocation.<\/p>\n<\/p><\/div>\n