Renaker Build lifted turnover and profit last year after completing a bumper run of Manchester and Salford residential jobs, despite warning that tougher regulation and tax barriers are slowing the next wave of scheme starts.

The Manchester tower builder posted turnover of £280m for the year to 31 October 2025, up 5.6% from £265m, while pre-tax profit jumped to £9.7m from £6.3m.

As the business worked through a heavy programme of completions operating margin rose to 3.3% from 2.2%.

In calendar 2025, Renaker Build handed over five projects delivering 1,414 flats, 576 student beds and 806 co-living units.

Bosses said the business now heads into 2026 from a “stable and secure position”, with a further 1,534 new homes and 861 student beds currently under construction and due to complete between 2027 and 2029.

But the firm also sounded a note of caution over the near-term market, saying no new contract starts took place during the financial year and warning that fresh starts are likely to fall back against 2024 and 2025 levels.

Renaker blamed the squeeze on a tougher mix of inflation, labour shortages and investment-holding regulation.

It said increases to the National Minimum Wage and employers’ National Insurance contributions added to operating costs, while Building Safety Act rules for high-rise schemes continued to delay client decisions and site starts.

The firm added that overseas investment was also being deterred by tax and legislative barriers, including stamp duty and rental reform changes.

Since the year-end, Renaker said the market has started to pick up with work starting on Parkside, Greengate and Plot 9B, with three more schemes in the immediate pipeline for 2026 starts.

Cash at bank fell to £4.2m from £15.8m as debtors climbed to £95.3m, although net assets improved 20% to £441m.