Berkeley to launch Build to Rent platform

Berkeley Group’s pre-tax profit fell 7.7% during its year ending April 30 2024 against 2023, with the business announcing it will launch a Build to Rent (BTR) platform.

The Surrey-based housebuilder said it had delivered profits of £557 million as per its guidance.

It has secured 80% of its sales for next year, driving a 5% increase in its guidance for 2025’s pre-tax profit to £525 million. It has reconfirmed guidance for 2026 at £450 million. But both are declines in previous performance.

The business is establishing a BTR platform “to maximise returns in today’s market conditions”. It said it recognised “the strong occupational and institutional investment demand for high quality, well-managed rental homes in London and the South East”.

It has initially identified around 4,000 homes across 17 of its brownfield regeneration sites.

The portfolio, Berkeley said, would be developed over the next ten years, broadly representing a 10% increase in delivery. It will be financed by a combination of internally generated funds, debt secured against rental properties once income is being generated, and the introduction of third-party capital “at the appropriate time”.

The company noted that inflation was easing, with …