UK high-end homebuilder Berkeley has today reaffirmed its annual profit guidance, but cautioned that the conflict in the Middle East was weighing on risk sentiment amid the prospect of prolonged inflationary and interest-rate pressures.
The British company expects to report a pre-tax profit of £450m for the year to April and a similar level for fiscal 2027, as it focuses on cash generation and optimising its land holdings and build-to-rent strategy.
Berkeley said that while sales enquiries remain healthy and underlying reservations were recovering towards summer levels, the trading environment from November 2025 to February this year was constrained by geopolitical events and macro-economic uncertainty.
While high living costs and elevated interest rates in the UK have already squeezed affordability for buyers, particularly in Berkeley's core markets, the ongoing Middle East conflict has added to concerns that construction costs could rise further and hurt consumer sentiment.
"We are working hard to counter the challenges we face and we are reviewing our planning consents to enhance and restore margins to the appropriate level to enable moving them into production," the company said in a statement.
