10 December 2025
If you are covering Berkeley Homes latest financial results, please find below a comment from Oli Creasey, head of property research at Quilter Cheviot:
“Berkeley Group announced its half year results this morning (to 31st Oct), though not much has changed, and most of what has changed has slipped backwards. 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. As a result, sales volumes were down 8% year-on-year, albeit revenues only fell 4%.
“Earnings per share were largely unchanged (down 2%) largely due to cost efficiencies, with Berkeley managing to reduce overhead costs by 6%, and marginally increase the operating margin by 60bps. The good news for shareholders is that this performance seems largely to have been priced in, and the company has reiterated guidance for the full year.
“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.”
