Profits at Berkeley have fallen by 7.7% year-on-year in the six months to 31 October to £275.1m, as the firm announced the launch of its new ‘Berkeley 2035’ growth strategy.

The housebuilder’s new 10-year strategy comes as the firm said that it “wants to play its full part in addressing” the shortfall in housing development and help “Government meet its ambitions”.

Berkeley 2035 is set to provide a framework in which the company can "utilise its entrepreneurial property expertise" to increase return on capital, establish its own build-to-rent platform and make returns to shareholders through share buybacks or dividends.

The launch comes as the firm announced its half-year results, which saw its net cash drop by £58m to £474m, between April and October, while its operating margin increased by 0.7% year-on-year.

Chief executive at Berkeley, Rob Perrins, said: "Despite ongoing geopolitical and macroeconomic volatility, we remain on track to achieve our pre-tax profit guidance of £525m for the full year and at least £450m for FY26. We are also on target to complete the final annual £283m payment under the current shareholder returns programme by 30 September 2025.

"There is good underlying demand for our homes, but transaction volumes remain around a third lower than FY23. Whilst we have seen a slight uptick in recent weeks, a meaningful recovery will require a sustained improvement in consumer confidence and stability in the wider macroeconomic environment.

"We therefore welcome Government's mission for growth and its brownfield-led housing agenda to resolve the issues in the planning system and deliver 1.5 million new homes over the next five years. Indeed, the strength and tone of Government's housing commitments have already galvanised the planning system."

Looking ahead, the property developer said that it still expects to maintain its profit guidance of £525m for the current financial year and £450m for the next.

This lines up with its objective of reaching profits of £1.5bn over this three-year period.

However, analysts have said the current state of the housing market could lead to a subdued reaction from investors.

Head of markets at interactive investor, Richard Hunter, concluded: "Until such time as consumer confidence returns and the revitalised planning system is able to bed in, the sector as a whole is likely to remain under some pressure. Indeed, Berkeley’s share price has fallen by 16% over the last year, as compared to a gain of 11% for the wider FTSE100, with a drop of 24% over the last six months contributing to the net decline.

"Well-regarded though the company may be, the market consensus of the shares as a hold implies that investors are not yet quite convinced that the new strategy and the existing sector obstacles are at the required inflection point."

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