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Berkeley Targets Up to 19.5% Operating Margins Across UK Housing Market by 2030

  • by- Grihik
  • Apr 2, 2026
British homebuilder Berkeley has warned of a slowdown in profit growth through 2030 and said it would halt land purchases as the Middle East conflict and likely higher borrowing costs dampen hopes of a housing market recovery, sending its shares down nearly 19 per cent.
Berkeley Targets Up to 19.5% Operating Margins Across UK Housing Market by 2030

April 2: Berkeley Group, a British homebuilder, anticipates a slowdown in profit growth until 2030 amid geopolitical tensions and anticipated interest rate hikes impacting the housing market.

Profit Outlook

The high-end homebuilder expects a pre-tax profit of £450 million for the fiscal year 2026. Over the four years from fiscal 2027 to 2030, the company now expects to earn more than £1.4 billion pre-tax , implying an average of £350 million per year.

Land Purchase Halt

Berkeley said it can no longer achieve its required rate of return on new land purchases due to increasing tax and regulatory burdens on residential development. The company noted that where residential transactions have been taking place, land prices have been "overheated." For now, Berkeley will only buy new land through joint ventures.

Market Challenges

The update comes as missile strikes by Iran, the US, and Israel in the Middle East push up building costs and risk keeping interest rates higher for longer, threatening the fragile demand recovery and prompting margin warnings from rivals such as Taylor Wimpey and Bellway.

Builders have warned that developer taxes, safety levies, and planning delays are limiting housing output.

Recovery Hopes Fade

Berkeley had begun to see signs of recovery in early 2026, but earlier concerns that the Middle East conflict would hurt demand and affordability have now become a reality.

Analyst View

Investec analyst Aynsley Lammin said: "Its currently strong land bank allows them to flex the delivery in the near term and allows them to react and deliver growth if the market and operational backdrop improves beyond FY26."

Market Reaction

Berkeley's shares fell to their lowest since December 2016 following Wednesday's update.