UK's Berkeley upbeat on London outlook despite weaker first-half results

Dec ‌10 (Reuters) - British homebuilder Berkeley said on Wednesday its ‍longer-term ‌outlook was more positive, particularly in London, despite ⁠staying cautious in the ‌near-term after half-year profit dropped nearly 8% due to subdued demand ahead of the budget.    

While the luxury home ⁠taxes introduced in the November budget are expected to weigh ​on high-end builder Berkeley, which has ‌a greater exposure to ⁠London and the South of England, analysts said resilient demand for its high-quality projects and new ​measures to speed up housebuilding in London should support its longer-term outlook.

However, in the first-half of its fiscal year 2026, Berkeley's sales fell ​4% ‍and pre-tax profit ​declined about 8%, as speculations of higher property taxes ahead of the budget kept buyers on the sidelines. 

The company reported a pre-tax profit of 254 million pounds ($338 million) for the six months ended ⁠October 31, down from 275.1 million pounds a year ago.

Berkeley remains on ​track to meet its pre-tax profit guidance of 450 million pounds for its fiscal year and expects a similar outcome in ‌fiscal 2027.

($1 = 0.7515 pounds)

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sumana Nandy and Eileen Soreng)