Berkeley launches £25m share buyback on back of £1.4bn profit forecast

Developer and housebuilder Berkeley Group has announced the launch of a £25 million share buyback scheme, as part of its ongoing shareholder returns programme.

The share buyback, which runs from tomorrow (1 May) to 24 June 2026, will be managed by Barclays Bank independently of the company, allowing purchases to continue during the year-end closed period.

All repurchased shares will be cancelled, reducing Berkeley’s share capital. 

The announcement follows the housebuilder’s recent financial update, in which it confirmed it is doubling down on its London land holdings to unlock £2 billion in value while navigating a challenging housing market.

Rather than pursuing new acquisitions, Berkeley will focus on optimising its existing portfolio of 50,000 homes and a pipeline of over 10,000 units in London and the South-East.

Berkeley reaffirmed its FY2026 pre-tax profit guidance of £450 million and a net cash position of £300 million, citing rising taxes, regulatory burdens, and high land prices as reasons to prioritise returns on existing assets.

The company also expects more than £1.4 billion in pre-tax profit from FY2027-FY2030, with targeted operating margins of 17.5-19.5 per cent.

In its half-year results to 31 October 2025, Berkeley reported a 7.7 per cent drop in pre-tax profit to £254 million but stressed it remains on track for FY2026 targets.

Net cash stood at £342 million after £132 million in shareholder returns, and net asset value per share rose five per cent to £37.63.

During the period, Berkeley’s pipeline of plots rose by 2,000 to around 14,000, with two sites acquired and three planning approvals including 890 homes at its £600 million Borough Triangle project, 485 Homes in Hemel Hempstead, and 480 homes in Brighton.

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