Overview
Berkeley Group Holdings plc warned on 11 September 2026 that buyer sentiment in the UK housing market remains weak ahead of the October budget, attributing the softness to the prolonged Middle East conflict and ongoing political uncertainty in Britain, which have weighed on core economic indicators since the start of its financial year. The company noted that customers without an immediate need to move are particularly cautious about committing to purchases.
Financial Guidance
The London‑focused developer confirmed it is still operating within its four‑year pre‑tax profit plan of £1.4 billion. It now expects pre‑tax profits to be broadly even over the plan period, with a slight weighting toward the first half of the current financial year. The firm flagged that some buyers may defer transactions until after the budget and any election‑related uncertainty is resolved.
Call for Stamp Duty Reform
Berkeley urged the UK government to reform the stamp duty land tax (SDLT) regime, arguing that a tax structure introduced when interest rates were near zero (0.25%) has become a binding constraint now that rates have normalised. The company called for capping the levy at 1% for first‑time buyers and downsizers and for scrapping the 5% surcharge on investor purchases, stating that such changes would boost transaction volumes and housing delivery, including affordable homes. It cited the government’s target of delivering 300,000 new homes per annum as a rationale for urgent reform.
Shareholder Returns
In the first four months of the year, Berkeley returned £60 million to shareholders by buying back 1.7 million shares at an average price of £34.18. To date, it has repurchased £171 million toward its £640 million shareholder‑return target for the period ending September 2030, putting the programme ahead of the required pace. The company expects net cash of around £250 million at the half‑year point.
Analyst Commentary
Goldman Sachs analysts noted that the reaffirmation of medium‑term guidance suggests the announcement is likely to have a limited impact on Berkeley’s share price.