Berkeley Group shares dropped as much as 18% following a strategic update. The stock reached its lowest point in nine years. The London-focused homebuilder halted all new land acquisitions. Management cited unprecedented cost increases and regulatory burdens for the decision. Geopolitical uncertainty and weak consumer confidence also drove the move. The company can no longer achieve its required rate of return on new land investments.
Berkeley now targets over £1.4 billion in pre-tax profit for the four years ending April 2030. This revised long-term outlook represents a significant reduction from previous expectations. The FTSE 100 firm maintained its current fiscal year profit guidance of £450 million. Berkeley will now focus exclusively on developing its existing land holdings.