Berkeley has continued to back its pre-tax profit expectations of £975m across the 2025 and 2026 financial years, despite "significant pressure on the delivery of new homes".

This guidance comprises £525m for the 2025 financial year and £450m in 2026, forming part of its Berkeley 2035 growth strategy.

In its Q3 trading update, the housebuilder stated that it has "maintained its strong financial position", with net cash anticipated to be around £300m at 30 April.

It added that this reflects an "acceleration of shareholder returns since the half-year through share buybacks" and an anticipated settlement of £100m to land creditors in the second half of the year.

The firm said that since its interim results in December, it has returned £71.3m to shareholders through share buybacks, with an interim dividend of 33 pence per share which will be paid on 28 March.

Furthermore, Berkeley said that enquiries for its properties are at a "consistently good level" and it has seen a "modest improvement in sales reservations".

However, for sales to return closer to the levels of three years ago, it said there "needs to be greater confidence in the trajectory of interest rate reductions and wider economic stability".

Looking ahead, the housebuilder said that it was "hugely encouraged by the change in mindset" in the Government’s planning reforms, but said it "remains concerned" about the extent and pace of regulatory changes in recent years and "significant pressure on the delivery of new homes".

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, added that there were "no surprises" in Berkeley's update, with remarks echoing "the trend seen across other housebuilding peers".

He concluded: "While these are now running ahead of last year’s level, there’s still some way to go to reach the boom of three years ago. Management pointed to a need for greater economic stability and interest rate cuts to help drive the next leg of demand.

"While the picture has improved, the sector’s not out of the woods yet. February’s RICS survey data suggested the property market might be losing some of its recent momentum, with some buyers and sellers stepping back amid caution around looming stamp duty changes. Despite the share price falling around 30% since September 2024, Berkeley remains sitting on solid foundations. A strong order book gives great revenue visibility, allowing the group to double down on its profit guidance for this year and next.

"The balance sheet looks strong, and with another £156.1m of dividends and share buybacks to be completed by September 2025, there’s plenty of appeal for investors. But if interest rate cuts and a housing market recovery comes through in the near to medium term, other names in the sector are likely to catch more wind in their sails."

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