Berkeley has confirmed it is on track to achieve its pre-tax earnings guidance of £450m for the full financial year.

The housebuilder, announcing a trading update for the four-month period to 31 August, revealed that 85% of the figure had already been secured through exchanged sales contracts, and that it also remains on target to achieve a similar level of profit in the 2027 financial year.

Berkeley is anticipating its pre-tax profits to be weighted “broadly evenly” between the first and second half of the year, subject to the timing of completions.

In the group’s opening four months, Berkeley also returned £121m to shareholders through the acquisition of 3.25 million shares at an average price of £37.20 per share. It has now completed the first £260m of the £2bn minimum shareholder returns by 2035 target, which it launched in December 2024.

A statement from the company said: “Berkeley’s business model can be a major catalyst for growth, delivering hugely positive outcomes for communities, the economy and environment through ambitious brownfield regeneration projects.

“We are committed to working with all levels of Government and other stakeholders to unlock this potential for the benefit of all.”

Head of property research at Quilter Cheviot, Oli Creasey, commented that Berkeley’s trading update pointed to “stable market conditions” over the past four months.

“While investors may have been hoping for signs of progression, especially following earlier summer remarks that sales were running 5% ahead of last year, management has reiterated full year guidance to April 2026, including a pre-tax profit target of £450m,” Creasey added.

“The company has also issued guidance for the following year, indicating a similar level of profitability, suggesting muted growth prospects in the near to medium term. Sell-side consensus currently implies around 3% growth in profitability for FY27, so while those estimates may get pared back slightly, the updated guidance won’t have come as a huge shock to analysts.”

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