Housebuilder and FTSE 100 constituent Berkeley Group Holdings PLC (LSE:BKG) has disclosed that transaction volumes in the current 2025 financial year “remain around a third lower” than two years prior.
In an interim earnings report published on Friday, the company acknowledged that “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”.
The residual effects of the cost-of-living crisis have caused a considerable slowdown in the housebuilding space, although Berkeley highlighted the Labour Party’s target to build 1.5 million homes in the next five years.
“Indeed, the strength and tone of government's housing commitments have already galvanised the planning system,” said chief executive Rob Perrins.
“We are now working closely with all levels of government to ensure that this positive momentum quickly translates into economically viable planning consents to unlock greater investment and delivery on the ground, but this will take time.”
Berkeley saw a high-single-digit yearly decrease in pre-tax profit to £275.1 million and a 5.8% dip on basic earnings per share in the first half.
During the period, Berkeley returned £242 million to shareholders via dividends and share buybacks.
The group restated its £450 million profit guidance for the following year.