Berkeley Group has seen its sales volume fall by 8% year-on-year in the six months to 31 October as a result of a subdued market amid speculation around the recent Budget.

The housebuilder stated that the value of its private sales reservations were broadly in line with H1 2025 for the first four months of its financial year, but its revenues in this period dropped by 4%.

Despite this, Berkeley said that customer interest has been good in the half year to the end of October, evidenced by its levels of enquiries and leads.

In the year to 31 October, its profit before tax fell by 7.7% to £254m, while its earnings per share dropped by 1.7% to 183.7 pence per share.

However, the firm said it had made good progress in its 10-year strategy, Berkeley 2035, which provides "resilience and flexibility" for the firm.

Executive chair at Berkeley, Rob Perrins, said: "Berkeley is a financially strong, asset-backed business and our 10-year Berkeley 2035 strategy provides the agility to navigate near-term headwinds while focusing on the drivers of long-term value from our well-located land holdings to deliver returns to shareholders over the cycle through share buy-backs and dividends.

"We also continue to work constructively with Government to address other barriers to housing delivery.

"There is renewed impetus for the required cultural and process change from a revitalised leadership team at the BSR, keenly supported by Government, and we look forward to this translating into a consistent, timely and reliable process for building approvals."

The group said that while its near-term sentiment remains cautious, its long-term outlook is more positive.

This is more apparent in London, where undersupply is compounding and affordability is gradually improving with falling interest rates, improved mortgage availability, strong wage growth and stable pricing.

It stated that it remains on track to meet its pre-tax profit guidance of £450m in the current financial year, along with a similar level in the following year.

After its announcements, shares in Berkeley jumped by over 3%.

Head of property research at Quilter Cheviot, Oli Creasey, said that while not much has changed year-on-year, most has what has changed has slipped backwards.

He concluded: "While sales levels were steady in the first four months of the period, the announcement of the November budget and the potential for changes to stamp duty and council tax saw would-be buyers waiting for the announcement.

"Berkeley's management noted good levels of interest in the company's product throughout the period, but constrained by economic conditions, notably interest rates. On this topic, management have made slightly unusual comments, remarking that ‘interest rates are taking too long to adjust to economic reality’.

"While we have seen housebuilders comment on Government policy recently, notably for demand-side stimulus, it is less typical to see management calling directly for interest rates to be lowered."

---