House builder Berkeley has pulled back from new land deals and will instead sweat its existing 50,000-home pipeline as market conditions continue to weigh on London housing delivery.

The firm said it will largely stop buying land, warning it cannot hit required returns amid rising tax, regulation and soft sales.

Instead, the developer will double down on extracting value from its existing sites and tightly control construction activity in line with demand and regulatory delays.

The move comes despite Berkeley holding firm on its £450m pre-tax profit target for FY26, alongside a strong net cash position of around £300m.

Berkeley said geopolitical instability and weaker expectations for interest rate cuts have already knocked back hopes of a near-term sales recovery.

At the same time, the Building Safety Regulator regime is continuing to drag out delivery timelines, with Gateway 2 approvals adding around 12 months between planning and start on site.

That delay is now feeding directly into programme phasing across Berkeley’s schemes.

The developer will now slow build-out rates, cut work-in-progress investment and sequence projects more carefully — a clear signal that contractors should expect a more staggered pipeline rather than volume growth in the short term.

Berkeley said it will also flex the pace of its build-to-rent arm, Berkeley Living, despite early leasing success on its first scheme at Alexander Gate.

Across the business, cost control remains central, with operating costs already cut from £178m to £150m in real terms over recent years.

Looking ahead, Berkeley expects to deliver more than £1.4bn of pre-tax profit over the next four years, with output weighted slightly towards 2027 before flattening out.

Margins are being held in the 17.5% to 19.5% range — but only through tighter discipline on land, build rates and capital allocation.