Homes. Communities. People.

2026 AnnuAl report

Contents

STRATEGIC REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

Read more on

pages 02 to 93

Read more on

pages 94 to 161

Read more on

pages 162 to 234

London Dock,

Wapping

At London Dock we have transformed a

previously closed-off site into a vibrant

part of Wapping with 7.5 acres of carefully

designed public space. This project will

deliver 2,000 private and affordable

homes, a local secondary school, and

the restoration of the Grade II Listed

Pennington Street Warehouse.

Front cover

Top left: Heron Wharf, Poplar

Top right: Regent’s View, Bethnal Green

Bottom: King’s Road Park, Fulham

01 | BERKELEY GROUP 2026 ANNUAL REPORT

162–234 FINANCIAL STATEMENTS94–161 | CORPORATE GOVERNANCE

01 | BERKELEY GROUP 2026 ANNUAL REPORT

Who we are

Berkeley builds homes

and neighbourhoods across

London, Birmingham and

the South of England.

Brownfield focus

We fulfil our purpose through long-term

brownfield regeneration.

We believe that reviving underused urban land

is the most sustainable form of development,

delivering good green homes where they are

needed most, and driving the growth and

productivity our country needs.

Read more on

pages 12 and 13

Our purpose

Our passion and purpose is to build quality

homes, strengthen communities and make

apositive difference to people’s lives.

We use our sustained commercial success

tomake valuable and enduring contributions

that benefit all of our stakeholders.

02–93 | STRATEGIC REPORT

Her Majesty The Queen opening

Mulberry Academy London Dock

Credit Simon Jarratt Photography

02 | BERKELEY GROUP 2026 ANNUAL REPORT02 | BERKELEY GROUP 2026 ANNUAL REPORT

Strategic Report

Pages

02–93

94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

03 | BERKELEY GROUP 2026 ANNUAL REPORT

02–93 | STRATEGIC REPORT

STRATEGIC REPORT

04 | Highlights of the year

06 | 50 years of leadership

and innovation

08 | Executive Chair’s Statement

10 | Driving growth and value

12 | Brownfield regeneration at scale

14 | Case study | Alexandra Gate

16 | Business model

18 | Chief Executive’s Review

28 | Market overview

31 | Trading and Financial Review

34 | Key Performance Indicators (KPIs)

36 | Responsible business at a glance

38 | Our Vision

57 | The Berkeley Foundation

58 | ESG performance

60 | Climate-related disclosures

77 | Nature-related disclosures

78 | Section 172(1) Statement

79 | Non-financial and Sustainability

Information Statement

80 | How we manage risk

81 | Principal risks

82 | Financial risks

83 | Viability Statement

84 | Risk tables

Horlicks Quarter,

Slough

The regeneration of the former Horlicks

factory site has created a distinctive new

neighbourhood within a short walk of

Slough Elizabeth Line Station. The iconic

factory, clock tower and chimney have

been carefully restored to form the historic

heart of the Horlicks Quarter, which will

deliver 1,300 private and affordable homes,

high quality public open spaces and

gardens, and a new community square,

nursery and café.

04 | BERKELEY GROUP 2026 ANNUAL REPORT

Highlights of the year

90%

of homes delivered

during the yearare

on regenerated

brownfield land

Brownfield

91%

of homes had zero or fewer

than five defects reported

by customers, compared to

31% across the industry (HBF,

March 2026)

Quality

4,076

homes delivered (plus 127 in

jointventures and 187 Build to

Rent homes), including some

10% of London’s new private

and affordable homes

Homes delivered

long-term regeneration

sites, of which 24 are under

construction

Regeneration

>1,200

acres of new or measurably

improved natural habitats

across 56 biodiversity net

gain sites committed to date

Regreening cities

£530m

of subsidies provided to

deliver affordable housing and

committed to wider community

and infrastructure benefit

Community benefit

Communities

+77. 9

Net Promoter Score (NPS)

from our customers, compared

to an industry average of

+61.4 (In-house Research,

December2025)

Customer satisfaction

8.5%

of our employees are

graduates, apprentices

orsponsored students

Skills and training

27,300

UK jobs supported per annum

over the last five years,

an average of 6.2 jobs per

completed home

Jobs

PeopleHomes

See our Trading and Financial

Review on pages 31 to 33

1 Read more about our alternative performance

measures on pages 216 to 218 (Note 2.25)

Financial highlights

£451m

2025 | £529m

Profit before tax

12.5%

2025 | 14.9%

Pre-tax return on equity

£363m

2025 | £337m

Net cash

£39.17

2025 | £35.95

Net asset value per share

£1,006m

2025 | £1,403m

Cash due on

forward sales

£6,442m

2025 | £6,722m

Future gross margin

in land holdings

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

05 | BERKELEY GROUP 2026 ANNUAL REPORT

FTSE4Good

Listed since 2003

MSCI ESG Rating 2026

AAA Leader

ISS STOXX ESG Corporate

Rating 2026

Prime status

White City Living

Berkeley is proudly celebrating half a century of

creating high quality homes, pioneering brownfield

regeneration and shaping sustainable places where

communities thrive.

S&P Global Corporate

Sustainability Assessment 2025

Member of Dow Jones Best-

in-Class (DJBIC) World and

Europe Indices; Sustainability

Yearbook Member: Top 5%

S&P Global CSA Score and

Industry Mover

Sustainalytics ESG Risk

Rating 2025

Industry ESG Leader and

Industry Low Carbon Leader

Celebrating 50 years

of creating homes and places

CDP Corporate A List 2025

Climate Change and Water

Security

Read more on

pages 6 and 7

06 | BERKELEY GROUP 2026 ANNUAL REPORT

Berkeley was founded

in 1976 by Tony Pidgley

CBE and Jim Farrer.

Their vision was for

a very different kind

of homebuilder – one

that strives to delight

customers through

exceptional quality,

relentless attention to

detail, and a level of

service and care that did

not exist in the housing

industry at the time.

50 years of

leadership

and

innovation

1976

Berkeley

founded in

Weybridge,

Surrey

50 years of driving progress

1986

Listed on the

London Stock

Exchange

following a

decade of

growth

1990

Takes on first

major urban

regeneration

sites

1996

Forms

innovative joint

venture to

transform

Thames Water

utility sites

2006

Forms

regeneration

joint venture

with M&G

Investments

2008

Receives first

Queen’s Award

for Enterprise:

Sustainable

Development

2010

Launches

pioneering

‘Our Vision’

responsible

business

strategy

94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

07 | BERKELEY GROUP 2026 ANNUAL REPORT

02–93 | STRATEGIC REPORT

Fifty years on, this founding

philosophy and entrepreneurial

culture remain deeply embedded

in Berkeley and have driven our

growth and evolution. Throughout

our journey, we have continued

to lead, innovate and take on the

challenges and opportunities

that matter most.

From build quality, placemaking

and urban regeneration, to

community building, climate

action, nature recovery and health

and safety, our highly talented

teams have consistently pushed

boundaries and set the standards

for our industry.

Our 50

anniversary is an

opportunity to celebrate this

legacy, our exceptional people,

and the high quality homes and

neighbourhoods that define

Berkeley today.

Strengthening

our brand

This milestone also provides a

natural opportunity to evolve and

consolidate our customer-facing

brands under our original and

defining identity: Berkeley.

Operating under our most trusted

and recognised brand strengthens

its impact and simplifies how

we engage with our customers

and stakeholders. It creates a

clearer, more consistent identity,

supporting stronger relationships

and enhancing our reputation in

the years ahead.

2026

The UK’s leading regeneration

specialist, with 30 long-term

brownfield sites

Delivering 10% of all new

homes in London

Industry-leading customer

satisfaction scores

Industry-leading build

quality standards

Double ‘A’ rating for Climate

Change and Water Security

from CDP

2011

Forms the

Berkeley

Foundation,

with a unique

long-term

charity

partnership

model

2014

Forms joint

venture with

National Grid

to transform

disused

gasworks

Receives second

Queen’s Award

for Enterprise:

Sustainable

Development

2016

Launches

pioneering

biodiversity

net gain (BNG)

initiative –

leading

to a national

roll out

2020

Sets science-

based targets

for carbon

reduction

Wins RoSPA’ s

Diamond Award

for exceptional

health and safety

leadership

2024

Establishes

Berkeley Living

Build to Rent

platform

08 | BERKELEY GROUP 2026 ANNUAL REPORT

Executive Chair’s Statement

I’m honoured to chair Berkeley in our

year. Today, we stand proudly as the

country’s leading brownfield regeneration

specialist and sustainable placemaker.

Our model is unique. We invest for the

long term. We unlock wasted land at scale.

We reenergise the urban economies.

And we deliver good green homes

wherethey are needed most.

Urban regeneration is a powerful

force for good and the only route to

sustainable growth.

Rob Perrins | Executive Chair

Berkeley has delivered £451 million

pre-tax profit for the year, with net

cash increasing to £363 million,

after £233 million of share buy-

backs, and closing net asset value

per share up 9% to £39.17. This

robust performance, which is in line

with guidance, reflects the focused

execution of our Berkeley 2035

strategy, disciplined cost control

and our agile response to extremely

challenging macro-economic and

regulatory conditions.

We delivered 4,203 good green

homes within the most under-

supplied regions of the UK,

with 90% built on underused

brownfield land within designated

regeneration areas. Our projects

contributed £530 million in

subsidies to deliver affordable

housing and commitments

to wider infrastructure and

community benefits this year.

Few business models deliver this

level of public good.

In the current environment, our

focus is on maximising long-term

shareholder value by optimising

our existing land holdings through

replanning to restore and enhance

margins, rather than acquiring new

sites; controlling operating costs;

tightly sequencing construction

in line with prevailing demand;

and flexing the pace of Build

to Rent (BTR) investment. This

prioritisation of cash generation

and disciplined capital allocation

will allow us to continue with

shareholder returns, increasing the

cadence of share buy-backs where

the share price is below net asset

value per share.

Resilient operating

performance in a volatile

environment

Long-term London

market fundamentals

underpin shareholder

valueproposition

Robust financial position

with net cash increasing

to£363 million

Current high tax and

regulatory burden resulting

in London building less than

10% ofthe homes itneeds

Focus on cash generation

provides opportunity for

enhanced share buy-backs

In its desire to stimulate economic

growth, the Government has done

an excellent job in restoring the

fundamentals of housing policy,

which had been abandoned by its

predecessor. It has also tried to

address the viability challenge with

the Homes for London package

which can make a huge difference

if implemented constructively and

with urgency.

However, it now takes at least eight

years to complete an apartment

building in the capital from the

point of acquisition, through

planning, agreement of Section

106 requirements, consultation

with statutory consultees,

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

09 | BERKELEY GROUP 2026 ANNUAL REPORT

Royal Arsenal Riverside, Woolwich

clearance of pre-commencement

conditions, detailed design,

Building Safety Regulator (BSR)

approval and construction. Ten

years ago, it took five years. A

further 18 months is required for

an appeal or call-in. There is no

certainty that a planning consent

will be secured at the end of this

process as our recent experience

at Peckham demonstrates where

the Inspectorate determined that

the Peckham Rye conservation

area would suffer too much harm

from new housing on the site of a

run-down shopping centre. This

after ten years of engagement on

a site allocated for housing in the

localplan.

Every part of the system needs to

work to reduce the time taken to

get buildings into development and

allow homebuilders to make a return

commensurate with the risk that can

attract the necessary investment

capital. Currently more homes are

being lost to other uses than being

built. This can be addressed with

the necessary policy changes and

strong political leadership.

Demand for and supply of new

homes has been hit by over ten

years of continual SDLT increases

and new surcharges. Introduced

by stealth during a period when

interest rates were 0.25%, these

taxes have curtailed the early

investment in new homes since

interest rates began to normalise

at the end of 2022. It is this early

investment that provides the

necessary certainty for brownfield

sites with their considerable

upfront costs to come forward,

thereby providing London with the

new affordable homes and homes

for rent it so desperately needs.

SDLT should be reduced on all

new homes to a maximum of 3%

(zero for first-time buyers) and

the SDLT surcharges that deter

the vital investment in new build

homes so damagingly should

be removed. These changes will

be fiscally neutral or better due

to the considerable increase in

tax revenues generated from

greater transactional activity

and by stimulating additional

homebuilding which drives

corporation tax (which is 29% on

all residential property developers’

profits) and payroll taxes (direct

and throughout the supply chain).

In the longer term, London’s outlook is hugely compelling and the city’s

core strengths and appeal remain firmly intact. The capital is a true

global hub, the largest financial centre in Europe and the second largest

in the world. It offers security, heritage, and investment potential in an

uncertain global environment.

Berkeley’s performance is

driven by the passion, skill and

commitment of our people.

They continue to deliver

hugely positive outcomes for

communities, the economy

and the environment in the

most challenging of conditions,

and I would like to thank them

on behalf of the Board and

shareholders.

Rob Perrins | Executive Chair

23 June 2026

These structural supply and demand challenges have left London

delivering less than 10% of its MHCLG annual new homes target,

with no prospect of material improvement without more decisive

intervention as it is clear that policy changes to date are not feeding

through to delivery. Specifically:

1. The Homes for London package should be fully implemented

forthwith and remain in place until London’s housing numbers

are restored.

2. The time taken to deliver new apartment buildings needs to

reduce from eight to five years, which it was ten years ago. This

requires recognition of the appropriate required development

return, with equitable review mechanisms that incentivise

development. In addition, Section 106 mechanisms should be

objectively assessed in a timely fashion with competing policy

requirements and layering removed.

3. The excessive tax burden, that was introduced in a different

economic paradigm, must be reduced to unlock demand and

attract the essential investment without which regeneration

schemes cannot proceed.

4. All regulators, including the BSR, need to be appropriately

resourced to meet targeted statutory deadlines.

If these measures are introduced, London can meet its housing

targets, tax revenues will grow and national GDP will increase by 1%.

10 | BERKELEY GROUP 2026 ANNUAL REPORT

Driving growth and value

EY completes an Economic Impact

Assessment each year based on

Berkeley’s financial data as well

aspublicly available statistics.

Berkeley specialises in unlocking the long-term value

of derelict and underused urban land. Our carefully

chosen brownfield sites are located within existing

communities, where new investment can deliver

greater economic, social and environmental value.

These pages summarise the key benefits of our

brownfield focused model over the last five years.

Economic value

EY’s independent Economic

Impact Assessment of Berkeley’s

activities highlights the following

keycontributions:

£13.7bn

GDP

Berkeley’s contribution to UK GDP was £2.7 billion

in 2025/26 and £13.7 billion for the last five years.

£4.0bn

tax

Berkeley’s total tax contribution was £0.8 billion in

2025/26 and £4.0 billion during the last five years.

This includes taxes paid directly by Berkeley and the

taxes paid by its customers and suppliers as a result

ofBerkeley’s activities.

27,300

jobs

Berkeley has supported, on average, 27,300 UK jobs

per annum directly and indirectly through its supply

chain overthe last five years.

21,915

homes

Berkeley delivered 4,203 private and affordable

homes and completed a further 187 homes for

BerkeleyLiving in 2025/26, and a total of 21,915

overthelast five years (including joint ventures).

£2.6bn

community contribution

Berkeley made a community contribution of £0.5 billion

in 2025/26 and around £2.6 billion over the last five years.

This includes £2.2 billion in affordable housing subsidies

andadditional payments of £0.4 billion to fundlocal

facilitiesand services.

On average, every new home built

by Berkeley in the last five years

has generated £300,000 of value

to thestate through taxation and

contributions tothecommunity.

EY 2026 Economic Impact Assessment

Regent’s View, Bethnal Green

11 | BERKELEY GROUP 2026 ANNUAL REPORT

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

Social value

>1,350

apprenticeships

Berkeley has supported more than 1,350 apprenticeships

in the last five years, including approximately 350 directly

and more than 1,000 gaining experience working on our

sites through our contractor workforce.

10%

of London homes

Berkeley delivered some 10% of all private and

affordable homes built in London over the last

five years. This is where new homes are needed most.

88%

of homes on brownfield sites

Berkeley has delivered 88% of new homes on brownfield

land over the last five years, with 90% of homes delivered

in 2025/26 on regenerated brownfield land.

>200,000

people engaged

Berkeley teams have engaged with more than 200,000

people in the last five years and more than 87,500 people

in 2025/26 through a mix of community engagement

activities, site tours, school visits and careers fairs.

550

community facilities

Berkeley is delivering a range of community facilities

on live development sites, including indoor community

spaces, schools, shops, sports facilitiesand children’s

playspaces.

Environmental value

>1,200 acres

of natural habitats

Berkeley is set to deliver more than 1,200 acres of

new or measurably improved natural habitats across

the 56 sites with biodiversity net gain plans in place

to date, helping to regreen our towns and cities.

>80

embodied carbon

assessments

Berkeley has completed more than 80 embodied carbon

assessments over the last five years, which are enabling

our teams to understand and drive down carbon emissions.

15%

water saving

Berkeley incorporates water savingfeaturesin new

homes and developments. Over the last five years our

homes have been, on average, 15% more water efficient

than building regulations requirements.

community plans

Our teams follow a Communities Framework which

enables a structured approach to building stronger

communities, setting out local needs, an action plan,

events, governance and stewardship. Over the last

five years, 49 community plans have been created.

In2025/26 there were 45 active plans in place across

ourlive sites.

Hartland Village, Fleet

12 | BERKELEY GROUP 2026 ANNUAL REPORT

London

Bridge

Waterloo

St.Pancras

Paddington

City

Airport

Heathrow

Victoria

Brownfield

regeneration

at scale

In production

1 Alexandra Gate, Haringey

2 Beaufort Park, Hendon

3 Bermondsey Place, Southwark

4 Bow Green

5 Camden Goods Yard

6 Grand Union, Brent

7 Green Park Village, Reading

8 Hartland Village, Fleet

9 Heron Wharf, Poplar

10 Horlicks Quarter, Slough

11 Kidbrooke Village, Greenwich

12 King’s Road Park, Fulham

13 Lombard Square, Plumstead

14 London Dock, Wapping

15 Oval Village

16 Royal Arsenal Riverside, Woolwich

17 Silkstream, Barnet

18 South Quay Plaza, Docklands

19 The Exchange, Watford

20 The Green Quarter, Ealing

21 TwelveTrees Park, Newham

22 West End Gate, Paddington

23 White City Living

24 Woodberry Down, FinsburyPark

* Pipeline sites

Future sites

1 Aylesham Centre, Peckham*

2 Borough Triangle

3 Bromley-by-Bow

4 Queensmere, Slough

5 Sutton Garden Square

6 Syon Lane, Brentford*

Berkeley is the only large UK homebuilder to align with the Government’s

brownfield-first housingagenda. We are taking forward 30 complex

regeneration projects. Each will deliver much needed new homes,

alongside new investment in public infrastructure, amenities and the

greenopen spaces a strong community needs.

Read more about

Alexandra Gate on pages 14 and 15

King’s Road Park, Fulham

13 | BERKELEY GROUP 2026 ANNUAL REPORT

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

Meeting housing needs –

Our sites are concentrated in London and

other severely undersupplied towns and

cities where the housing crisis is atits worst.

Driving economic growth –

Our investment is focused within established

urban economies, delivering greater growth

and productivitybenefits.

Strengthening communities –

We deliver new homes, jobs, amenities

and infrastructure in the heart of existing

communities where they are most needed.

Regreening cities –

Ourprojects bring nature andbiodiversity

back to neglected urban sites, reducecar

dependency and preserve thecountryside.

Skills and social mobility –

By investing in designated regeneration

areas we createa lasting source of

skills training and job opportunities to

disadvantagedcommunities.

Key benefits of urban regeneration

14 | BERKELEY GROUP 2026 ANNUAL REPORT

Case study | Alexandra Gate

At Alexandra Gate, Berkeley is transforming a derelict 12-acre

gasworks into a green and welcoming mixed-use neighbourhood

with over 1,800 private and affordable homes, 125,000 square

feet of commercial space, and 2.5 acres of parks and public

open space.

Patient capital

Work began in 2017, with Berkeley

investing £98 million in upfront

capital to create a place prior to

completing the first home.

Placemaking in action

Over 800 much-needed private and

affordable homes have now been

delivered, along with a community

hall, nursery, food store, coffee

shop and the popular Hornsey

Park. More than 600 jobs and 33

apprenticeships have been created

on site and the masterplan has

evolved to include 187 Build to

Rent homes, which form part

of the Berkeley Living portfolio.

Driving sustainable growth

Alexandra Gate is a designated

brownfield site within the Haringey

Heartlands Opportunity Area,

sustainably located close to local

tube and rail stations, and the

established amenities of Wood

Green. Berkeley’s early investment

has driven wider regeneration and

growth in this part of North London.

12-acre

derelict brownfield site

£98m

upfront capital investment

>1,800

private and affordable homes

2.5 acres

public space for Wood Green

150%

biodiversity net gain

Delivering homes

and growth in the

heart of Haringey

Before regeneration

15 | BERKELEY GROUP 2026 ANNUAL REPORT

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16 | BERKELEY GROUP 2026 ANNUAL REPORT

Business model

Our values

Excellence through detail

Be passionate

Respect people

Think creatively

Have integrity

Read more about our

investment case on page 19

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

17 | BERKELEY GROUP 2026 ANNUAL REPORT

Our Vision responsible

business strategy

— Drives our performance, fosters innovation

and leads to lasting positive impacts for

society and the natural world

— A strategic approach across five priority

areas: customers and homes; places and

communities; climate and nature; people

and culture; and operational excellence

— Focus on urban brownfield regeneration,

which is inherently sustainable, socially

inclusive and supports a lower carbon

model for modern living

Land acquisition

— Acquire land at the right time in the cycle,

targeting sites where we can add value over

the long term through our regeneration and

placemaking expertise

— Adopt an innovative approach to partnering

with land owners, such aswith joint venture

partners and localauthorities

— Focus on complex, large-scale brownfield

sites in undersupplied markets where

we can take a bespoke approach to

each development

Designing and

planning new homes

— Reputation for successful regeneration

delivery underpins the planning process

— Embrace a highly collaborative approach

toplacemaking

— Design unique and beautiful places

in partnership with local authorities

andcommunities

— Continually evolve development plans

to generate the best outcome for

allstakeholders

Building new homes

and places

— Consistent health and safety, building safety

and quality assurance standards embedded

into operations

— Highly experienced and expert in-house site

management teams and direct partnerships

with building trades, rather than main

contractor-led sites

— Utilising modern methods of construction

and investing in digital technologies to

enhance and modernise our production

processes

Marketing and selling

new homes

— Berkeley’s brand leadership and reputation

for lasting product quality provides a clear

competitive advantage in core markets

— Diversified sales channels across

owner-occupiers, private and institutional

investors, retirement living and affordable

housing providers

— Berkeley Living brings our reputation

for quality, craftsmanship and service to

undersupplied rental markets

Placekeeping

and stewardship

— Demonstrable long-term track record

of high levels ofcustomer service

andsatisfaction

— Long-term strategies for effective

estate and community management,

working in partnership with residents

andmanagingagents

18 | BERKELEY GROUP 2026 ANNUAL REPORT

Chief Executive’s Review

We are the only large-scale UK homebuilder

focused on brownfield regeneration, which

is a vital driver of growth and a powerful

force for good in our towns and cities.

Richard Stearn | Chief Executive

Purpose,

Long-term

Strategy and

Capital Allocation

Berkeley’s purpose is to build

quality homes, strengthen

communities and make a positive

difference to people’s lives, using

our sustained commercial success

to make valuable and enduring

contributions to society, the

economy and the natural world.

We are the only large UK

homebuilder to prioritise

brownfield land, as we progress

30 of the country’s most complex

regeneration projects, 24 of

which are in delivery. Each of

these neighbourhoods is uniquely

designed in partnership with

local councils and communities

and includes valuable public

amenities and infrastructure,

alongside tenure-blind private

andaffordable homes.

All levels of government policy,

backed by a wealth of evidence,

clearly prioritises development

activity in designated urban

regeneration areas as the means

of increasing UK growth and

productivity, utilising existing

infrastructure, and improving

living standards and social

outcomes for disadvantaged

communities. This is also the most

popular form of development with

the public and there is a clear

consensus that building homes on

greenfield sites cannot deliver the

same level of economic, social or

environmental benefit.

Berkeley has made positive

progress across its urban

development portfolio in the year,

as we transform neglected land

into welcoming and sustainable

neighbourhoods.

At The Green Quarter in Ealing,

the former Southall Gasworks

has been stitched back into the

local community, with over 1,000

private and affordable homes

completed to date, alongside 5

acres of carefully designed parks,

playgrounds and playing fields,

a tree nursery and nature trail,

and a thriving Parkside Yards

community hub, which includes

a pub, restaurant, café, shop, dry

cleanersand community space.

£451m

£363m

£530m

£233m

£39.17

+77. 9

Profit before tax

Net cash

Affordable housing

and community

infrastructure subsidies

Shareholder returns

Net asset value

per share

Net promoter score

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

19 | BERKELEY GROUP 2026 ANNUAL REPORT

Investment Case

Berkeley has a strong track record of delivery,

profitability and cash generation through market

cycles, reflecting its long-term business model,

which is underpinned by five key features:

Long-term

shareholder returns

290% TSR

(Total Shareholder Return)

since 1 January 2007

Only large UK homebuilder

focused on brownfield

regeneration at scale

— Delivering sustainable homes

and neighbourhoods on

brownfield land with

significant socio-economic

benefits

— Aligned with Government’s

brownfield first agenda

— Each project individually

designed in partnership

with local authorities and

communities

Core London and South East

markets are systemically

under-supplied

— London has global appeal,

withdeep and proven

demand

— Berkeley delivers over 10%

of London’s new private and

affordable homes each year

Financial strength provides

strategic optionality

— Net cash of £363 million,

with £1,200 million of debt

facilities (30 April 2026)

which was increased to

£1,400 million post year end

— Cash due on private forward

sales under exchanged

contracts of £1.0billion

— Land holdings estimated

future gross margin of £6.4

billion across 52,700 homes

Unrivalled land holdings

sustaining delivery profile

— Not under pressure to buy

land

— Over 70% of homes are in

London

— Over 90% of homes have

outline or full planning

consent

Added value developer

maximising returns on eachsite

— Bottom-up approach

which identifies the best

development solution and

maximises absolute returns

from each site

— Sales volumes important on a

site-by-site basis, but are

not the sole determinant for

creating value

— Instead, long-term value is

createdthrough the land and

planning strategy

— Financial risk managed

through land approach and

forward selling

— Agile and responsive to

the prevailing operating

environment

Our improved masterplan received

full planning consent in January

2026, increasing the total number

of private and affordable homes

to over 8,000 and unlocking

additional community benefits

forSouthall.

At Woodberry Down in Finsbury

Park our long-term estate

regeneration partnership with

the London Borough of Hackney

and Notting Hill Genesis has now

delivered more than 2,900 high

quality private and affordable

homes and over 40,000 sqft

of commercial and community

facilities, including a post office,

shops, cafés, restaurants, a

business centre for local SMEs,

and the hugely popular Redmond

Community Centre. Woodberry

Down is defined by its welcoming

natural landscape, including the

4.5-acre Spring Park, and by the

incredible Woodberry Wetlands

nature reserve which opened to

the public in 2016. Enabling works

for Phase 4 are now complete

and an enhanced masterplan

was approved in October 2025

increasing the total number of

homes to 6,500.

Berkeley is a unique, asset-focused

development business that seeks

to manage risk and generate value

through market cycles, with its

inherent latent value rooted in its

unrivalled land holdings. We seek

to find the optimum development

solution for each site in terms

of the social, environmental and

economic value for all stakeholders,

alongside the returns we deliver to

our shareholders. We firmly believe

these objectives are mutually

compatible and reinforcing.

The pace at which we deliver

homes from our land holdings

is determined by the prevailing

operating environment and we will

always adopt a long-term approach,

prioritising financial strength above

annual profit targets.

Our capital allocation policy is clear:

— First, ensure financial strength

reflects the cyclical nature

and complexity of brownfield

development and is appropriate

for the prevailing operating

environment;

— Second, invest in the business

(land and work in progress,

including Build to Rent assets)

at the right time; and

— Third, make returns to

shareholders through share

buy-backs and dividends.

20 | BERKELEY GROUP 2026 ANNUAL REPORT

Chief Executive’s Review continued

Berkeley 2035 provides the agility to allocate

capital according to the prevailing macro-

economic and regulatory environment,

enabling the business to adjust swiftly in

volatile conditions, adjusting the emphasis on

each of the following key levers of long-term

value creation:

— Land investment and optimisation;

— Investment in construction work in progress

in the core business;

— Investment and growth in Berkeley Living

(BTR); and

— Shareholder returns.

1. New land investment

Berkeley does not currently

believe it can make its required

rate of return on investment in

new land acquisitions due to

the continuous increase in the

tax and regulatory burden on

residential development. We

have therefore stopped acquiring

new land while these conditions

prevail, except through joint

venture arrangements, and

will focus on our existing land

holdings It is counter-productive

that further taxes and tariffs,

such as the Building Safety Levy,

are due to be introduced into

this environment.

2. Existing land holdings

As a brownfield regeneration

specialist, Berkeley already

possesses unrivalled land

holdings comprising over

50,000 homes, with a further

pipeline of more than 10,000

homes, located in London and

the South East, the UK’s most

under-supplied markets. Our

focus will be on applying the

principles of the new Homes

for London package to our

sites to provide the certainty

required to bring forward our

long-term regeneration sites at

returns commensurate with the

development risk.

Our target under Berkeley 2035

is to add £2 billion of value to

these land holdings through

optimisation and bringing

our pipeline sites through the

planning process, against which

we have made good progress in

the last 12 months.

3. Investment in construction

work in progress

Construction phasing will

continue to be matched to

market demand and the pace

of Building Safety Regulator

approvals, ensuring disciplined

management of work-in-progress

and stock levels.

4. Investment in Berkeley Living

We are well advanced with

the first six Berkeley Living

communities, which are

located on our existing urban

regeneration sites within

areas of high rental demand.

When completed in FY28,

these six carefully designed

and professionally managed

developments will represent

an investment of around £400

million at cost. Our first three

Berkeley Living developments

have been launched to market,

with lettings velocity and rents

both performing strongly, and we

were delighted to welcome our

first residents to Foundry Yard at

Alexandra Gate in April.

We remain firmly committed to

our strategy to deliver 4,000

BTR homes by the end of FY35

and will review phasing of the

second tranche of schemes on

an ongoing basis, along with our

plans for recycling capital from

the initial six buildings as market

conditions evolve over the period.

5. Focus on operating margin

Berkeley will target operating

margin within its historic range of

17.5% to 19.5%, assuming stable

conditions. This requires both

the maintenance of development

margins and further real

reductions in operating costs.

6.Shareholder returns strategy

Berkeley has now delivered

£372 million of the £2.0 billion

shareholder returns under

Berkeley 2035 since 1 December

2024. This included £260 million

up to 30 September 2025 and

£112 million to 30 April 2026.

The next target is a further

£528 million by 30 September

2030 which we are currently

comfortably on target tomeet.

In these market conditions where

the share price is below NAVPS

which is £39.17 at year end, we

believe that share buy-backs

are the best way to maximise

shareholder value.

Berkeley 2035 Strategy update

Against the regulatory backdrop and subdued

transaction levels of the last three years, the

Group has progressively taken action to protect

the business and strengthen its balance sheet,

maintaining a strong cash balance, lowering land

creditors from £900 million to £486 million and

reducing operating costs from £178 million to £150

million, a 25% reduction in real terms. During this

time, we have limited new land investment, buying

just three sites, funded by non-core disposals.

As a result of escalating geopolitical tensions,

we announced decisive action on 1 April 2026 to

rephase delivery of Berkeley 2035 over the next

fouryears through the following strategic measures:

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

21 | BERKELEY GROUP 2026 ANNUAL REPORT

Berkeley 2035 capital allocation

Minimum target 10-year shareholder return

As at 30 April 2026

Target

Return

£’m

Returned

To Date

£’m

Buy-backs

Dividends

Paid

£’m

Amount

Remaining

£’m

FY25

£’m

FY26

£’m

Due by 30 Sept 2025 260 260 106 121 33 –

Due by 30 Sept 2030 640 112 – 112 – 528

Due by 30 Sept 2034 1,100 – – – – 1,100

Total 2,000 372 106 233 33 1,628

White City Living

Shareholder returns during the financial year totalled £233 million:

Shareholder returns for the year ended 30 April

2026

£’m

2025

£’m

Dividends paid – 68.0

Special dividend paid – 183.8

Share buy-backs undertaken 233.0 129.7

Shareholder return in the financial year 233.0 381.5

Of the £233 million returned in

the year, £121 million completes

the first £260 million of the

£2.0billion minimum shareholder

returns target under the Berkeley

2035 strategy, launched in

December 2024.

The next shareholder returns

target is £640 million by

30September 2030, of which

£112million was completed by

30April 2026. The remaining

£528 million will be made through

a combination of share buy-backs

and dividends.

These will be phased over

the intervening period in line

with Berkeley’s flexible capital

allocation model.

Shareholder Returns

22 | BERKELEY GROUP 2026 ANNUAL REPORT

Sales

Trading levels for the first four

months of the year were stable and

consistent with the prior year but,

as we noted at our interim results,

the uncertainty over property

taxation in the three-month lead-in

to the November Budget adversely

affected transactions over this

period. The new year then began

with a degree of optimism, in

widespread anticipation of interest

rate cuts and gradual economic

recovery. However, the wider

ramifications of the Middle East

conflict brought the fragility of

the nascent recovery into context

and the market has returned to

being characterised by caution

andlacking in urgency.

Against this backdrop, forward

sales have reduced to £1,006

million (31 October 2025: £1,137

million and 30 April 2025: £1,403

million) as the value of sales

reservations secured in the year

was around 15% below the run-rate

of the previous two years, with

Berkeley maintaining a disciplined

approach to pricing and achieving

values slightly ahead of business

plan assumptions.

Importantly, customer interest has

remained good throughout, as

evidenced by the level of enquiries

and leads, and supply remains

woefully constrained with new

starts around 10% of the MHCLG

target. This bodes well for the time

when greater confidence returns

to the market.

At present, we are seeing

good transaction levels from

customers with a current need or

strong liquidity buying close to

completion, matching transactions

where necessary, with the level of

off-plan sales more impacted by

the lack of urgency in the market.

Our new Build to Rent platform,

Berkeley Living, has performed

well to date, letting over 120

homes and taking its first

occupations at Foundry Yard,

Alexandra Gate in April.

Chief Executive’s Review continued

Housing Market and Operations

Both letting velocity and rental

levels have been strong, further

demonstrating the underlying

demand for good quality homes

in London.

Looking to the future, while

near-term sentiment remains

cautious, the long-term outlook

is more positive, particularly in

London, where undersupply is

compounding. There is good

mortgage availability and we

have been through a period of

strong wage growth, with little

property inflation. This is good for

affordability, which will improve

further once interest rates fall

again, making this a good time for

customers with the ability to buy,

to do so, and take advantage of

the prevailing market dynamic.

London remains one of the

world’s most popular places to

live, work, and invest. The city’s

global status and appeal reflect

its dynamism and culture, trusted

legal framework, world-class

infrastructure, deep talent pools,

tolerant society and leading

commercial, education, and

knowledge clusters. It remains

the biggest financial centre in

Europe and second biggest in

the world. As confidence returns,

these fundamental strengths will

reassert themselves and Berkeley

is uniquely positioned to support

the city’s future success.

Construction

Berkeley has continued to

experience highly competitive

tendering across most trades

during the period, as our supply

chain looks to secure near-term

work in an environment where

housing and wider construction

activity remains subdued,

particularly in London. While the

ongoing conflict in the Middle

East has introduced inflationary

pressures on certain inputs, these

have been largely mitigated

through Berkeley’s strategy of

forward procuring key packages

on a fixed price basis.

Together with softer labour

market conditions, this has

helped to limit cost increases,

with build costs remaining

relatively stable over the year.

We expect inflationary pressures,

particularly those driven by higher

energy costs, to emerge within the

supply chain towards the second

half of 2026 and into 2027. A lack

of new project starts and delays

to live projects continues to place

financial strain on the supply

chain, and Berkeley is working

closely with its trusted partners to

maintain delivery capability.

Self-Remediation Terms

andContract

On 13 March 2023 Berkeley

entered into the Self-Remediation

Terms and Contract with MHCLG,

under which developers have

responsibility for any life-critical

fire safety defects in buildings they

have developed in the 30-year

period to April 2022.

For the 825 relevant buildings

Berkeley has developed over

this period, we have third party

assessments on 99%. All of the

remaining buildings are where

Berkeley is not the freeholder

and we expect to complete

these assessments over the

next three months. There are 39

buildings where works are still

to be completed, seven of which

are buildings where Berkeley

is reimbursing Government for

the works under the Developer

Remediation Contract. Where

works are required and yet to

commence, Berkeley intends to

begin works as soon as reasonably

possible, subject to access being

provided by the freeholder. It is

Berkeley’s preference to take full

responsibility for all its relevant

buildings and to complete an

required works itself as this will

speed up the overall process

of remediation. We are seeking

recoveries from the supply chain

and insurers where appropriate.

Lombard Square, Plumstead

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

23 | BERKELEY GROUP 2026 ANNUAL REPORT

Our Vision responsible

businessstrategy

We continue to take action on our

ambitious long-term responsible

business strategy, Our Vision, helping

to drive our performance, spur innovation

and deliver a lasting positive impact

for society and the natural world.

Richard Stearn | Chief Executive

For more detail see

pages 36 and 38 to 56

24 | BERKELEY GROUP 2026 ANNUAL REPORT

We continue to work closely

with Government and the

BSR to complete any required

remediation work as quickly as

possible which, together with

the actions taken to date, should

restore trust and confidence to

the housing market, enabling it to

operate efficiently, effectively and

fairly for all.

Land and planning

At 30 April 2026 Berkeley’s land

holdings comprised 52,763 plots

across 59 developments (30

April 2025: 52,714 plots across

64 developments), including

those in the St Edward joint

venture. The plots in the land

holdings have an estimated future

gross profit of £6.4 billion (30

April 2025: £6.7 billion), which

includes Berkeley’s 50% share

of the anticipated profit from

StEdwarddevelopments.

Through replanning activity,

Berkeley has replaced £0.3 billion

of the £0.6 billion gross profit

recorded through the Income

Statement in the year. The

estimated future gross margin

in the land holdings at the end

of the year was 24.4% (30 April

2025: 24.7%).

As at 30 April 2026 Change 30 April 2025

Owned 52,763 49 52,714

Contracted – – –

Plots 52,763 49 52,714

Sales value £26.4bn -£0.8bn £27.2bn

Average selling price* £502k -£20k £522k

Average plot price* £42k -£6k £48k

Land cost % 8.4% -0.8% 9.2%

Gross margin £6,442m -£280m £6,722m

Gross margin % 24.4% -0.3% 24.7%

* Reflects joint venture sites at 100%

Chief Executive’s Review continued

During the year, Berkeley secured

new masterplan consents at

The Green Quarter in Ealing and

Woodberry Down in Hackney.

New planning consents were

secured at Borough Triangle (890

homes), Hemel Hempstead (485

homes) and, following an appeal,

Brighton Gasworks (480 homes).

In addition, more than 40 planning

amendments were agreed to

existing consents for additional

homes, including at Bow Green,

White City Living, TwelveTrees

Park in West Ham, London Dock in

Wapping, Heron Wharf in Poplar,

Lillibrooke in Maidenhead and the

Horlicks Quarter in Slough. We

were also delighted to receive a

positive outcome for our appeal

atCamden Goods Yard after the

year end.

Despite these significant

steps, decision-making within

the planning and regulatory

system remains uncertain, as

demonstrated by the Planning

Inspectorate blocking Berkeley’s

policy-compliant plans for over

850 homes on a designated

regeneration site in Peckham town

centre. Our plans to regenerate

both Beckton Gasworks and

Motspur Park Gasworks have also

been blocked at local level, and we

welcome the GLA’s swift action to

call-in these applications.

The estimated future gross

margin represents management’s

risk-adjusted assessment of the

potential gross profit for each site,

taking account of a wide range

of factors: current sales and input

prices, political and economic

conditions, the planning and

regulatory frameworks, and other

market forces – all of which could

have a significant effect on the

eventual outcome.

The pipeline (not included in the

land holdings) now comprises

approximately 11,000 plots

(30 April 2025: 12,000 plots),

following the conditional

acquisition of a 145-acre site

in Bromley, and the transfer of

Hemel Hempstead into the land

holdings. The pipeline includes

the first phase of the site at

Beckton (2,800 homes), which

received a recommendation for

approval at Committee during

the year but is subject to a

call-in by the GLA as we were

unable toagree a commercially

acceptable review mechanism

with the localauthority through

the Section 106 agreement.

Housing Market and Operations continued

Grand Union, Brent

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

25 | BERKELEY GROUP 2026 ANNUAL REPORT

26 | BERKELEY GROUP 2026 ANNUAL REPORT

Chief Executive’s Review continued

Build to Rent (BTR) Platform

Berkeley has continued to advance its BTR strategy, with the first six

buildings now transferred to the BTR platform, which includes two

transfers during the year at Grand Union and Silkstream, bringing the

platform to 1,122 homes currently completed and in production:

The platform brand –

Berkeley Living – has been

established to bring Berkeley’s

reputation for build quality,

placemaking expertise and

exceptional customer service to

undersupplied rental markets.

During the year, Berkeley Living’s

first homes were launched at

Alexandra Gate and Kidbrooke

Village, with a third launched after

the year-end at Silkstream. Three

further launches are planned this

year at Horlicks Quarter, Eden

Grove and Grand Union.

During the year, 11 additional

planning consents have been

obtained to revise the amenity

provision or optimise the unit mix

and layouts for the rental market.

The initial BTR portfolio homes are

included in the land holdings plots

and future estimated gross profit.

Sites in the BTR platform (30 April 2026) Location

Initial BTR

Homes

Total BTR

Homes

– Alexandra Gate, Haringey Zone 3 187 419

– Kidbrooke Village, Greenwich Zone 3 90 206

– Eden Grove, Staines Surrey 158 158

– Horlicks Quarter, Slough Berkshire 327 327

– Grand Union, Brent Zone 3 177 351

– Silkstream, Barnet Zone 3 183 183

Allocated to the BTR platform –

completed and in production

1,122

– BTR future production 2,878

– Other sites – 2,356

Initial BTR portfolio 4,000 4,000

Kidbrooke Village, Greenwich

Oakhill, Hildenborough

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

27 | BERKELEY GROUP 2026 ANNUAL REPORT

Berkeley is determined to play

a full part in delivering the

Government’s housing and growth

mission, as demonstrated by our

continued focus on long-term

urban regeneration. We strongly

support the Government’s

planning policy reforms and

encourage rapid, decisive

implementation to ensure these

measures translate into more

positive decision-making inside

the system.

With the macro backdrop

deteriorating, there is now a

clearcase for further Government

action beyond the initiatives

announced to date. We are

encouraged that ministers and

officials are actively engaged

and recognise the remaining

investment barriers and

disincentives within the tax,

planning and wider regulatory

system. We are confident that

delivery will respond quickly as

they are addressed.

The underlying fundamentals

of London and the South-East’s

undersupplied housing market

remain compelling across both for

sale and rental tenures. London

is a true global city, one of the

world’s leading financial centres,

with exceptional strengths as a

place to live, work and invest.

While short-term buyer caution

has been driven by uncertainty

over the timing of interest

rate reductions, underlying

demand indicators remain

positive, and transactions will

recover as conditions and

confidenceimprove.

Berkeley is in a strong financial

and operational position, with a

clear long-term plan to create

value for shareholders and wider

stakeholders across the cycle.

We are operating in a highly

complex and rapidly changing

environment and will always run

the business for the long term,

prioritising financial strength.

While the current level of elevated

geopolitical and macro-economic

uncertainty persists, we will

continue to be agile, matching

production to demand, being

efficient in our operations,

enhancing our land holdings and

investing in Berkeley Living, with

the focus on cash generation,

over short-term profit targets, to

facilitate returns to shareholders.

The precise balance is very hard

to call in this environment but

operating with this agility will

maximise shareholder value over

the long term.

Outlook

28 | BERKELEY GROUP 2026 ANNUAL REPORT

Figure 2 – Regional housing supply

–

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

East of

England

East

Midlands

London North

East

North

West

South

East

South

West

Midlands

Yorkshire

and the

Humber

Homes

2023/24

2024/25

2025/26 (EPC data)

Assessed Housing Need

Berkeley’s core markets

200,000 40,000

100,000 20,000

75,000 15,000

125,000 25,000

50,000 10,000

25,000 5,000

150,000 30,000

175,000 35,000

225,000 45,000

250,000 50,000

275,000 55,000

300,000 60,000

-58%

-86%

2007 Q4

2011 Q4

2018 Q4

2015 Q4

2022 Q4

2009 Q4

2013 Q4

2020 Q4

2008 Q4

2012 Q4

2019 Q4

2016 Q4

2023 Q4

2024 Q4

2025 Q4

2010 Q4

2017 Q4

2014 Q4

2021 Q4

England Starts England TargetLondon Starts London Plan Target

Pandemic

recovery

Figure 1 – Construction starts activity

Figure 3 – Transaction volumes

London Starts (rolling 12 months)

England Starts (rolling 12 months)

Market overview

1,500,000

1,250,000

1,000,000

750,000

500,000

250,000

–

200,000

100,000

50,000

150,000

250,000

2006 Q4

2007 Q4

2008 Q4

2009 Q4

2010 Q4

2011 Q4

2012 Q4

2013 Q4

2014 Q4

2015 Q4

2016 Q4

2017 Q4

2018 Q4

2019 Q4

2020 Q4

2021 Q4

2022 Q4

2023 Q4

2024 Q4

2025 Q4

Mini Budget3% SDLT

levy imposed

England (excl. London)

London

England Transactions (rolling 12 months)

London Transactions (rolling 12 months)

Pandemic

recovery

The housing market is

sensitive to underlying

sentiment and

prevailing geopolitical

and macroeconomic

conditions. It is

inherently cyclical in

nature, and Berkeley’s

strategy is designed

to operate in this

environment, with a

long-term business

model that enables us

to deliver homes and

positive outcomes for

all stakeholders across

the cycle.

The global economy

continues to face

heightened volatility, with

the conflict in the Middle

East an additional and

ongoing source of instability.

The UK also faces its own

domestic challenges with a

strained fiscal and political

environment contributing to

a complex and challenging

operating environment for

the housebuilding sector.

Inflation was 2.8% in the year

to April 2026, materially

lower than the 3.5% of a

year earlier, and dramatically

lower than the double-digit

levels seen in 2022. The

conflict in the Middle East

has paused expected falls in

inflation, meaning interest

rates are likely to remain

somewhat higher than

previously expected. Despite

these concerns inflation is

still expected to continue

falling towards the Bank of

England’s 2% target, and

further interest rate cuts

areexpected.

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

29 | BERKELEY GROUP 2026 ANNUAL REPORT

The Green Quarter, Ealing

The sector is often considered

a bellwether for the health of

the wider economy, and the

Government has rightly included

it as a central part of its mission

for growth. It is encouraging that

the Government has focused on

reforming the planning system,

particularly with respect to

London’s supply side challenges

that need to be overcome to solve

the historical structural undersupply

of housing in the capital.

The Government has pledged

to deliver 1.5 million homes in

England over this Parliament. At

300,000 homes a year, this is a

level consistent with the previous

Government target, but one which

requires a significant increase in

housing starts from where they

stand today.

The National Planning Policy

Framework (NPPF) was revised

at the end of 2024 to, among

other things, reintroduce housing

targets and release more land

for new homes. A further reform

of the NPPF is currently ongoing

including the implementation

of National Decision Making

Policies (NDMPs) and a number

of further amendments to the

planning system that it is hoped

will increase supply.

Following on from these national

reforms the Homes for London

package of funding and planning

reform focused on London and

announced in partnership between

the Government and the GLA was

an extremely welcomed recognition

of the particular challenges of

London, and its importance to

solving the national housing crisis,

and driving economic growth.

This package is the first to face

into London’s central challenge of

project viability, and the need to

prioritise the competing asks made

of urban regeneration to ensure

projects go ahead.

To be successful, these reforms

now require pragmatic and

flexible implementation to give

homebuilders the certainty to

invest and bring forward the many

currently stalled regeneration

projects at the pace needed to

address the decline in London’s

new housing starts.

Whilst this much needed focus on

planning is welcomed, the impact

of these initiatives will not be

immediate. Other challenges of the

operating environment are wide

reaching, including the impact

of build cost inflation and supply

chain strength, affordability and a

reduced demand from affordable

housing providers due to their

funding constraints.

A rational review of property

taxation is essential in restarting the

market. This includes allowing the

full expensing of capital investment

needed to get urban regeneration

projects off the ground, as well as

supporting investors who purchase

newly built homes by excluding

them from the 5% SDLT surcharge.

The sector has absorbed a rapidly

changing regulatory environment,

including the Building Safety

Act 2022, the Building Safety

Regulator, the Future Homes

Standard, the Environment Act

2021, biodiversity net gain and

significant changes to building

regulations Part B, Part F,

Part L, Part O and Part S. The

introduction of the Residential

Property Developer Tax and the

expected introduction of the

Building Safety Levy place further

pressure on development viability.

Affordability constraints and

evolving customer preferences

continue to drive strong demand in

the rental sector, sustaining rental

growth. With the rental market

accounting for a fifth of households

in England, the BTR sector is an

increasingly important part of the

market and the Renters Rights

Act 2025 has increased the trend

towards the professionalisation of

the rental sector. 2025 saw record

levels of capital being deployed in

the sector.

Whilst Berkeley supports positive

changes, the increasingly

challenging operating

environment has resulted in

subdued construction activity

nationally, which is impeding

much needed supply.

The long-term fundamentals of

Berkeley’s core housing markets

of London and the South East

remain strong:

— London’s position as a global

city, leading in many industries,

education, entertainment, and

the arts remains a compelling

offering;

— Systemic undersupply in

London and the South East

looks likely to become more

acute over coming years due to

falls in housing starts;

— Unemployment remains at low

levels,

with strong wage growth;

— Interest rates are still expected

to fall from the recent peak,

improving affordability and

sentiment;

— A competitive lender market

ensures interest rates feed

through to good mortgage

availability; and

— Strong growth in the rental

market means potential

investors can achieve

appropriate yields, supporting

new build rental demand.

30 | BERKELEY GROUP 2026 ANNUAL REPORT

Market overview continued

London and the South East are

systemically undersupplied

Meeting the Government’s 1.5

million home target requires

average completions of 300,000

per year across this Parliament.

During 2025/26, the number of

new homes completed across

England was around 205,000,

the lowest level since 2015/16.

Given the path of housing starts

and planning permissions, future

completions are likely to remain

materially below target, further

compounding the supply issue.

There were 125,000 starts reported

in England in 2025, which is lower

than the pandemic impacted

period (see Figure 1).

Planning permissions also

continued to decline in 2025,

extending a multi-year downward

trend, and are now at their lowest

level since 2013.

London’s housing need is now

assessed as 88,000 homes per

year,

however, the current London

Plan (which remains in place) has

an annual housing delivery target

of 52,000 homes which if reached

would still represent a shortfall

of 36,000 homes or around 41%

every year relative to the NPPF’s

assessment of need. In 2024/25,

there were 33,000 homes delivered

in London, of which 28,000 were

new build.

The delivery in 2025/26

is expected to be broadly similar,

a 63% shortfall compared to the

latest identified need.

This supply constraint in London

looks set to tighten further in the

medium to long term, as new

construction starts have fallen to

record lows of just 7,500 in the

last year despite an uptick in Q1

2026 (see Figure 1). This low level

of activity is consistent across both

the private and affordable sectors.

The situation in the South East

is similar. The latest housing

need assessment for the region

increased to nearly 71,000 (from

51,000) homes per year,

compared

to average completions of 38,000

per year over the last three years.

4, 5

This is an annual shortfall of 33,000

homes (46%), the second highest

regional shortfall behind London.

A lack of building in London, will

also tend to increase the need for

homes in the wider South East.

Transaction volumes

Transaction volumes over the last

year have settled at levels prior to

the pandemic. This current level

of activity is less than half the

peak activity in 2006, prior to the

financial crisis (see Figure 3).

The reaction to temporary

SDLT cuts in recent periods

demonstrated the positive impact

a more permanent rationalisation

of the SDLT regime could have

on housing market activity.

Conversely, the introduction of

the 3% SDLT levy on additional

properties in 2016 and its increase

to 5% in 2024 showed the adverse

impact of increased transaction

taxes on overall activity. In the

context of a highly taxed sector

this likely means the Treasury is

raising less revenue not more.

The tendency of investors

to purchase earlier in the

development cycle means they are

a particularly importantelement

in de-risking future cash flows and

driving overall housing supply.

Such investment (including

some overseas purchasers, who

have also been impacted by the

introduction of a further 2% SDLT

surcharge) is a crucial element of

new housing supply. They typically

invest early in the development

cycle, which allows developers

and their funders to bring forward

larger and more capital-intensive

developments, thus creating

significant additionality beyond

their directpurchases.

Setting conditions for growth

Berkeley strongly supports the

Government’s ambition to increase

housing delivery as a key part of

its mission to increase economic

growth. Delivering new homes is

key not only to solving the housing

crisis, but driving up productivity

and wider economic growth as well

by improving labour mobility and

the affordability of housing.

Despite some initial success

in reforms to the planning and

regulatory system and in the setting

of clear objectives for the delivery

of more good green homes in the

places where they are most needed,

the pace of reform has slowed and

the Government needs to redouble

its efforts if it is to set the right

conditions for growth in the sector.

To grow the sector needs a

predictable and supportive planning

environment, it needs developers

to have the confidence to invest

in new sites and new phases or

sites, and it needs customers who

want to live, work or invest in the

completed homes. To achieve this

theGovernment must:

— Implement the Homes for London

package in a pragmatic and flexible

manner aimed at delivering the

spirit of the reforms and securing as

many new homes as possible;

— Directly support investment by

allowing the full expensing of

the investment needed to get

brownfield urban regeneration

projects up and running. This would

bring the sector in line with other

forms of capital investment;

— Support investors that help deliver

new homes by removing the 5%

additional home SDLT surcharges

if, and only if, an investor finances a

new build home;

— Support home ownership by

fixing regulatory problems with

the Freedom to Buy mortgage

guarantee scheme that limit its

uptake;

— Make the overall tax burden on

urban regeneration manageable, by

replacing CIL with negotiated S106

agreements, scrapping the Building

Safety Levy, and adding a sunset

clause to the RPDT when it has

raised the money required; and

— Solve the operational issues of the

Building Safety Regulator so it can

support the safe delivery of taller

buildings at scale.

Sources:

(1) Bank of England; (2) Savills; (3) Office for

National Statistics; (4) MHCLG EPC data; (5)

MHCLG Live Table 118; (6) MHCLG Live Table

213; (7) House of Commons Library Debate

Pack, May 2025; (8) MHCLG Live Table 217;

(9) Land Registry

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

31 | BERKELEY GROUP 2026 ANNUAL REPORT

Revenue of £2,383.3 million

in the year (2025: £2,486.5

million) included £2,265.2 million

of residential revenue (2025:

£2,432.2 million), £110.4 million of

commercial revenue (2025: £14.8

million) and £7.7 million of land

sales (2025: £39.5 million).

4,076 new homes (2025: 4,047)

were completed across London

and the South-East at an average

selling price of £546,000 (2025:

£593,000) reflecting the mix of

properties completed in the year.

The gross margin percentage is

25.1% (2025: 26.6%), reflecting

the mix of developments on

which homes were completed in

theyear.

With overheads of £150.4 million,

£9.9 million lower than the prior

year (2025: £160.3 million),

the operating margin is 18.7%

(2025:20.1%).

The cost of borrowings and

amortisation of associated fees

and imputed interest on land

creditors is outweighed by

interest earned from gross cash

holdings, resulting in net finance

income of £1.6 million for the year

(2025: £14.2 million).

Berkeley’s share of the results

of joint ventures is a profit of

£3.0 million (2025: £14.7 million),

with St Edward’s profits arising

largely from its developments

outsideLondon.

The taxation charge for the year

is £133.1 million (2025: £146.9

million) at an effective tax rate

of 29.5% (2025: 27.8%), which

incorporates the additional 4%

RPDT and Corporation Tax of 25%.

Pre-tax return on equity for the

year is 12.5% (2025: 14.9%) and

return on capital employed for

theyear is 13.8% (2025: 16.5%).

Basic earnings per share has

decreased by 10.8% from 371.8

pence to 331.6 pence, which takes

account of the 6.3 million share

buy-backs for £233.0 million.

Trading performance

Year ended 30 April

2026

£m

2025

£m

Change

£m %

Revenue 2,383.3 2,486.5 -103.2 -4.2%

Gross profit 597.2 660.3 -63.1 -9.6%

Operating expenses (150.4) (160.3) +9.9 -6.2%

Operating profit 446.8 500.0 -53.2 -10.6%

Net finance income 1.6 14.2 -12.6

Share of joint ventures 3.0 14.7 -11.7

Profit before tax 451.4 528.9 -77.5 -14.7%

Pre-tax return on equity 12.5% 14.9% -2.4%

Earnings per share – basic 331.6p 371.8p -40.2p -10.8%

Taxation

The Group has an overall

tax charge of £133.1 million

for the year (2025: £146.9

million) and an effective tax

rate of 29.5% (2025: 27.8%).

The Group manages its

tax affairs in an open and

transparent manner with the

tax authorities and observes

all applicable rules and

regulations in the countries

in which it operates. Factors

that may affect the Group’s

tax charge include changes in

tax legislation and the closure

of open tax matters in the

ordinary course of events.

Total tax paid

(year ended 30 April 2026)

Corporate Tax £105.5m

SDLT £5.5m

PAYE £64.6m

Employees’ NI £8.6m

Employer’s NI £31.0m

For the year ended 30 April 2026, the total

tax contribution to the UK Treasury was

£215.2 million; split between taxes borne

by Berkeley of £142.0 million (corporation

tax, employer’s NIC and SDLT) and taxes

borne by our employees of £73.2 million

(PAYE and employees’ NIC). This total

tax contribution does not include the

indirect tax contribution paid by Berkeley’s

suppliers and customers. The wider indirect

tax impact is set out on page 10.

Trading and Financial Review

£215.2m

32 | BERKELEY GROUP 2026 ANNUAL REPORT

Regent’s View, Bethnal Green

Trading and Financial Review continued

Financial position

The Group’s net assets are

£3,640.2 million (2025:

£3,559.8million).

Investment properties

Investment properties of

£297.2million increased by £151.5

million in the year (30 April 2025:

£145.7 million), measured on a

cost basis, reflecting the transfer

of two assets from inventory

(£82.4 million) to the Group’s BTR

platform and construction related

investment across the six assets

in the platform. As at 30 April

2026 two of the properties under

construction completed while the

remaining four continue to be

under development.

Inventories

Inventories of £4,743.3 million

include £563.1 million of land not

under development (30 April

2025: £554.3 million), £3,848.5

million of work in progress (30

April 2025: £4,160.1 million) and

£331.7 million of completed stock

(30 April 2025: £337.8 million).

During the year, three

developments (One Waterside,

Bath, Reading Riverworks and

Hertford Locks) have been moved

from land not under development

into work in progress. The

completed stock is spread across

29 developments (30 April 2025:

25 developments).

Creditors

Total creditors of £2,182.7 million

include £639.1 million of on-

account contract receipts from

customers (30 April 2025: £711.5

million) and land creditors of

£485.8 million (30 April 2025:

£714.0 million). Of the total £485.8

million land creditor balance, £113.6

million is classified as short term.

Creditors include provisions of

£226.3 million (30 April 2025:

£229.6 million) which represent

post completion development

obligations, including those related

to building fire-safety matters, and

other provisions.

Summarised Balance Sheet

as at 30 April

2026

£m

2025

£m

Change

£m

Non-current assets (excluding

investment properties)

297. 3 379.3 -82.0

Investment properties 297. 2 145.7 +151.5

Inventories 4,743.3 5,052.2 -308.9

Debtors 121.8 100.4 +21.4

Creditors (2,182.7) (2,455.1) +272.4

Capital employed 3,276.9 3,222.5 +54.4

Net cash 363.3 337.3 +26.0

Net assets 3,640.2 3,559.8 +80.4

Shares, net of treasury and EBT 92.9m 99.0m -6.1m

Net asset value per share 3,917p 3,595p +322p

Abridged Cash Flow for year ended 30 April

2026

£m

2025

£m

Profit before taxation 451.4 528.9

Taxation paid (98.5) (120.5)

Net investment in working capital (164.2) (215.5)

Net receipts from/(investment in) joint

ventures

40.3 (15.8)

Other movements 30.0 9.7

Shareholder returns (233.0) (381.5)

Increase/(decrease) in net cash 26.0 (194.7)

Opening net cash 337.3 532.0

Closing net cash 363.3 337.3

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

33 | BERKELEY GROUP 2026 ANNUAL REPORT

Net cash

The Group ended the year with

net cash of £363.3 million (2025:

£337.3 million), an increase of

£26.0 million.

The net cash comprises gross

cash deposits of £1,023.3 million

and long-term borrowings

of £660.0 million. Long-term

borrowings have decreased by

£17.9 million in the year following

the repayment of the Homes

England borrowing facility (see

Funding below).

Net assets and NAVPS

Net assets increased over

the year by £80.4 million to

£3,640.2 million (30 April 2025:

£3,559.8 million) as shareholder

returns of £233.0 million and

other movements in reserves

of £4.9 million partly offset the

profit after tax for the year of

£318.3million.

The shares in issue, net of treasury

and EBT shares, closed at 92.9

million compared to 99.0 million

at the start of the year. The net

reduction of 6.1 million shares

comprises two movements:

— The 6.3 million of share buy-

backs undertaken during the

year for £233.0 million (£37.10

per share); and

— The issue of 0.2 million shares

under the 2011 LTIP.

Consequently, the net asset value

per share is 3,917 pence at 30

April 2026, up 9.0% from 3,595

pence at the start of the year.

Funding

The Group’s borrowing capacity

of £1,200 million was unchanged

during the year and comprises:

— £400 million unsecured 10-year

Green Bonds which mature in

August 2031 at a fixed coupon

of 2.5% per annum; and

— £800 million bank facility,

including a £260 million

Green Term Loan and a

£540 million undrawn

Revolving Credit Facility.

Berkeley has allocated the

proceeds of the Green Bonds

and Green Term Loan to its

ongoing development activities

in accordance with its Green

Financing Framework (available

on its website).

With borrowings of £660 million,

the Group’s gross cash holdings

of over £1.0 billion throughout the

year have been placed on deposit

with its six relationship banks.

After the year end, the Group

extended the banking facility to

£1.0 billion, comprising a £240

million Term Loan, which is fully

drawn bearing interest at a rate

linked to SONIA, and a £760

million Revolving Credit Facility

(RCF) which remains undrawn.

These banking facilities are in

place to June 2031 with two one-

year extensions taking the facility

to June 2033.

Joint ventures

Included within non-current

assets are investments in joint

ventures accounted for using

the equity method which are at

£203.1 million at 30 April 2026

(2025: £243.4 million). The net

£40.3 million decrease in the year

arises from Berkeley’s 50% share

of three movements:

— Share of profits earned in joint

ventures of £3.0 million;

— Dividend distribution from St

Edward of £45.1 million; and

— Share of loan contributions to

site specific joint ventures of

£1.8 million.

In St Edward, 127 homes

were completed in the year

at an average selling price of

£843,000 (2025: 282 homes at

£499,000). Completions occurred

predominately at its South East

developments, Hartland Village

in Fleet, Green Park Village

in Reading and Highcroft in

Wallingford, alongside the final

three penthouses in the Millbank

development.

During the year, one development

(Arch & Bloom, Guildford) moved

from land not under development

into work in progress.

In total, 2,004 plots (2025: 2,429

plots) in the land holdings relate

to four St Edward developments,

all outside of London (Reading,

Fleet, Wallingford and Guildford).

The Strategic Report on pages

02to 93 was approved by the

Board and signed on its behalf by:

Richard Stearn

Chief Executive

23 June 2026

34 | BERKELEY GROUP 2026 ANNUAL REPORT

Key Performance Indicators (KPIs)

Our KPIs are aligned to the business strategy and

are used to actively monitor business performance.

Financial KPIs

Profit before tax

(£m)

557.3

604.0

551.5

This is our core measure of profitability,

our absolute return from the sale and

delivery of new homes in the year.

Definition: Profit earned by the Group

during the year, including any finance

income and costs and share of results

of joint ventures, but before any

taxexpense.

Link to Our Vision:

528.9

451.4

Net cash

(£m)

410.4

268.9

This provides a measure of the financial

strength of the Group.

The £0.4 billion of net cash at 30 April

2026 combined with £1.2 billion of

borrowing capacity provides the Group

with total liquidity of £1.6 billion.

After year end, the Group extended the

borrowing capacity to £1.4 billion. See

Note 2.27 on page 218.

Definition: Cash and cash equivalents,

less total borrowings. See page 213.

Link to Our Vision:

337.3

363.3

532.0

Pre-tax return on equity

(%)

18.7

17.5

This is the efficiency of the returns

generated from shareholder equity

inthebusiness.

Read more on remuneration on

page132.

Definition: This is measured by

calculating profit before tax as a

percentage of the average of opening

and closing shareholders’ funds.

See pages 217 and 218.

Link to Our Vision:

14.9

12.5

16.2

Future gross margin

in land holdings

(£m)

7,629

8,258

This provides a measure of expected

value in the Group’s land holdings,

including its share of joint ventures, in

the event that it successfully sells and

delivers the developments planned for.

Definition: This represents

management’s risk-adjusted

assessment of the potential gross profit

for each of the Group’s sites, including

the proportionate share of its joint

ventures, taking account of a wide

range of factors, including: current

sales and input prices; the economic

and political backdrop; the planning

regime; and other market factors; all

ofwhich could have a significant effect

on the eventual outcome.

Link to Our Vision:

6,929

6,722

6,442

Net asset value per share

(£)

33.63

31.01

28.18

This Balance Sheet measure reflects the

value of shareholders’ interests in the

net assets of the business.

Definition: Net assets attributable to

shareholders divided by the number

of shares in issue, excluding shares

held in treasury and shares held

by the Employee Benefit Trust.

See page 217.

Link to Our Vision:

35.95

39.17

Cash due on forward sales

(£m)

1,403

1,006

1,701

This measures cash due from

customers under unconditional

contracts and reflects the strength and

financial stability of the business from

secured future sales.

Definition: This measures cash still due

from customers at the relevant Balance

Sheet date under unconditional

contracts for sale. It excludes forward

sales of affordable housing, commercial

properties and institutional sales, and

forward sales within the Group’s joint

ventures. Seepage218.

Link to Our Vision:

2,136

2,171

2022

2023

2024

2025

2026

HOMES &

CUSTOMERS

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

35 | BERKELEY GROUP 2026 ANNUAL REPORT

Non-Financial KPIs

2022

2023

2024

2025

2026

Net Promoter Score (NPS)

(Rate)

Our six-month rolling NPS is an indicator

of the success of our efforts to provide

world-class customer service. Our

NPS significantly exceeds the sector

average of +61.4 (In-house Research,

December 2025) and compares

favourably with top-performing

consumer brands.

Definition: Customers register a

score between 0–10 of how likely

they are to recommend us to a friend;

9–10 being classified as promoters,

7–8 being passive, and 0–6 being

detractors. TheNPS is the percentage

of promoters less the percentage of

detractors, on a scale of -100 to +100.

Link to Our Vision:

81.6

77.9

80.2

79.2

77.2

Annual Injury Incidence

Rate (AIIR)

(Rate per 100,000 people)

This measure shows the number of

reportable injuries during the year,

in relation to the number of Berkeley

employees and on-site contractors.

Our AIIR significantly outperforms the

construction industry average of 280

(Health and Safety Executive (HSE),

November2025).

Definition: This rate is calculated by

taking the number of reportable injuries

across our operations throughout the

year, multiplied by 100,000, divided by

the average number of people working

across our sites, offices and sales suites

in the year.

Link to Our Vision:

102

100

Direct apprentices and

training

(%)

8.9

This measure shows the proportion of

our employees who are an apprentice,

graduate or sponsored student.

On average, we had more than 90

apprentices, 55 graduates and 60

sponsored students during the course

ofthe year.

Definition: Calculated as the average

monthly percentage of our direct

workforce who are apprentices,

graduates or sponsored students, in

line with the definition provided by

The5% Club.

Link to Our Vision:

8.7

8.5

9.5

10.0

Brownfield regeneration

(%)

This measure shows the proportion of

our homes delivered on brownfield

regeneration land during the year

(including joint ventures).

Definition: This is measured by

calculating the number of homes

delivered during the year on brownfield

regeneration land as a percentage of

total homes delivered during the year.

It includes joint ventureactivities.

Link to Our Vision:

Affordable housing subsidies

and wider contributions

(£m)

580

530

370

560

556

This measures our contribution to

affordable housing subsidies delivered

and wider community infrastructure

benefits committed during the year. The

value in any one year is influenced by

the number and mix of homes delivered.

Definition: This is the total financial

contribution of community and

infrastructure benefits committed to

under Section 106 agreements during

the year, together with the opportunity

cost of affordable homes delivered

in the year with reference to open

market value.

Link to Our Vision:

Greenhouse gas (GHG)

emissions intensity

(tCO

e/100 sqm)

0.28

0.22

0.61

This measure relates to the GHG

emissions resulting from our direct

activities to the floor area completed

in the year. The figure is disclosed on

an operational reporting boundary,

as further explained in the Directors’

Report. See pages 158 to 159.

Definition: This is calculated by

dividing our absolute scopes 1 and

2 (market-based) emissions by the

residential and commercial floor area

legally completed in the year (including

joint ventures), plus the floor area of

homes completed for Berkeley Living.

Link to Our Vision:

0.30

0.27

Key | Our Vision priorities

2022 2022

2023 2023

2024 2024

2025 2025

2026 2026

2022

2023

2024

2025

2026

2022 2022

2023 2023

2024 2024

2025 2025

2026 2026

36 | BERKELEY GROUP 2026 ANNUAL REPORT

Responsible business at a glance

Berkeley has an established approach to responsible business.

We define this as the holistic way we manage the business that

takes into account economic, socialand environmental value.

Kidbrooke Village

Our Vision is our

ambitious responsible

business strategy, which

drives change, sets

us apart and delivers

lasting positiveimpact.

An integrated strategy

for ESG

Our Vision provides a framework

for how we address Environmental,

Social and Governance (ESG)

issues. It includes topics such as

sustainability, health and safety,

and quality, and encompasses

our approach with a number of

stakeholders such as customers,

employees and the supplychain.

Our Vision sets out the strategic

priorities for the business. Each

of the priorities includes a long-

term goal and is supported by an

underlying action plan with targets

and a set of core KPIs which we use

to measure outcomes and impacts.

For 2026 we have evolved Our

Vision in the context of Berkeley

2035 and our current operating

environment; including the addition

of Berkeley Living to our portfolio.

Reporting on progress

This year we are reporting

progress against the 10 strategic

priorities and related targets of

OurVision2030.

We are also introducing the

revisedstructure of our responsible

business strategy, which we will

report against going forward.

This updated version is known

asOurVision.

Embedding it day-to-day

Our Vision is underpinned

by detailed policies, standards

and management systems in

areas such as technical design,

procurement, sustainability and

health and safety. These set a clear

framework for the teams within

each of our autonomous businesses

to follow. We use our network of

operational committees (see page

105) to embed Our Vision and to

drive progress in each priority area.

Tackling material issues

In 2026 we conducted a

comprehensive Double Materiality

Assessment to reassess the ESG

topics that matter most to the

business and its stakeholders, and

understand how relevant they are,

in the context of Our Vision. The

process followed best practice

and emerging regulations,

combining value chain analysis,

internal expertise, stakeholders’

views, and a structured scoring of

Impacts, Risks and Opportunities

(IROs). The assessment identified

a focused set of material topics

across the ESG agenda.

Strong governance

Our Vision is overseen by a team

at Group level and managed by a

network of subject matter experts

across the business.

Quarterly updates are prepared for

the Main Board together with an

annual presentation on progress.

Monthly Board meetings are held

with the CEO, CFO, COO, Group

Executive for Responsible Business

and Group Head of Sustainability.

Progress on ESG topics is taken into

account in ExecutiveRemuneration

(see page 132).

Read more about our

stakeholders on pages 78

and110 to 117

Policies

We have policies in place

to govern our day-to-day

activities and the behaviour

of our employees, partners

and supply chain across key

topics such as business ethics,

employee matters, human rights,

sustainability, building safety

and quality assurance, and health,

safety andwellbeing.

ESG performance

pages 58 and 59

Climate-related disclosures

pages 60 to 76

Section 172(1) Statement

page 78

Performance

and disclosures

Non-financial and Sustainability

Information Statement page 79

38 | BERKELEY GROUP 2026 ANNUAL REPORT

Progress against Our Vision 2030

Places that stand the test of time: What we create

Customers Quality Communities Climate action Nature

Achieve a Net

Promoter Score

of +70 or above

annually.

Achieve a

Recommend

to a Friend

score of 95% or

above annually.

Encourage 90% of

customers to sign

up to MyHome

Plus, our customer

information portal.

Transform our

digital offering to

enable customers

to interact with us

24/7 by 2026.

Adjust and embed

processes in

response to the

Building Safety

Act requirements.

Ensure

appropriate

competence of

our people and

supply chain for

building safety.

Further

enhance our

internal training

programme for

building safety

year-on-year.

Target 90% of

our homes to

be delivered on

brownfield land.

Embed a

Community

Plan on all

developments by

2026.

Generate social

value through each

development.

Work with

external experts

to assess people’s

quality of life on

developments.

Undertake

embodied carbon

assessments

and target

reductions for each

development.

Engage with

manufacturers of

the top five impact

materials by 2026.

Rebaseline and

achieve validation

on our science-

based targets and

net zero target.

Achieve a 15%

reduction in energy

consumption from

2023 to 2030.

Develop an

approach for

environmental

net gain.

Assess the

impact of nature

within our supply

chain in line with

the Taskforce

on Nature-

related Financial

Disclosures

(TNFD) and report

externally by 2028.

Reduce

construction

waste by 50%

from 2023

to 2030.

Progress against targets

Achieved In progress

Key | Progress

Employee

experience

Modernised

production

Future

skills

Supply

chain

Shared

value

Increase staff

engagement in

each survey.

Embed our

approach to

Equity, Diversity

and Inclusion

(EDI), focusing

on leadership,

awareness

and training.

Achieve an AIIR of

250 or below per

100,000 people,

targeting zero

harm.

Raise the

proportion

of women in

management

positions to

33% by 2026.

Further embed

our new digital

platform to

capture the

golden thread

of information

for every home.

Utilise Building

Information

Modelling (BIM)

for apartment

schemes over

18 metres.

Measure and

increase the

proportion of Pre

Manufactured

Value (PMV) within

our developments.

Ensure the

Berkeley

Competency

Framework is

being effectively

implemented.

Maintain

membership of

The 5% Club.

Host a range

of careers

events focused

on increasing

the diversity

of individuals

attracted to work

in the industry.

Support SMEs

by gifting

Apprenticeship

Levy.

Align our

processes with the

recommendations

of the Chartered

Institute of

Procurement and

Supply (CIPS).

Work with Code

for Construction

Product Information

(CCPI) to ensure

standards are

improved across

the supply chain

for product

information by

2026.

Assess all

contractors for

modern slavery risk.

Increase employee

engagement with

the Foundation

year-on-year.

Leverage skills

and expertise

across the Group

to support the

Foundation’s

charity partners.

Demonstrate

the impact of

the Berkeley

Foundation’s

work supported

by the Group.

Progress against targets

Exceptional people and resources: How we work

Achieved an industry-

leading Net Promoter

Score (NPS) of +77.9,

compared to an industry

average of +61.4

(In-house Research,

December 2025).

Awarded Best UK

Homebuilder for

After Sales Care by

HomeViews, the UK’s

leading independent

customer review

platform.

Handed over 91% of

our homes with zero or

fewer than five defects

reported by customers,

compared to 31%

across the industry

(HBF, March 2026).

Contributed £530

million to community

infrastructure, whilst

delivering 550

public amenities

across our live

development sites.

Employees raised

£660,000 for the

Berkeley Foundation

and its charity partners,

supporting communities

in the places where

we work.

Achieved a 14%

reduction in scopes 1

and 2 GHG emissions.

Completed

>80 embodied

carbon

assessments

to date.

Celebrated 10 years of

biodiversity net gain

(BNG), with strategies

created for 56

developments to date.

Launched our revised

Waste Action Plan.

Received validation

for our new science-

based targets.

Secured a

prestigious double

‘A’ score from

CDP for Climate

Change and

Water Security.

Led health and safety

workshops with 10

scaffolding companies

as part of our Working at

Height campaign.

Partnered with

the Construction

Leadership Council

(CLC) on a project to

address silica risk

in worktops.

Built supply chain

resilience through

more than 95 new

and revised materials

supply agreements.

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39 | BERKELEY GROUP 2026 ANNUAL REPORT

Launched a Group-

wide ethnicity network

as part of our EDI

strategy.

Retained Gold

membership of The

5% Club, with 8.5%

of our employees in

'earn and learn'

positions.

Performance highlights

40 | BERKELEY GROUP 2026 ANNUAL REPORT40 | BERKELEY GROUP 2026 ANNUAL REPORT

Our Vision strategy update

Our Vision has been in place since

2010 and we review it regularly,

ensuring that it responds to our

business, industry and regulatory

context, and that our targets

continue to challenge us.

The latest review showed strong progress,

including meeting many of our targets. We have

therefore taken the opportunity to evolve

the strategy, with updated goals and targets

that keep us on track, leading the future of

urban regeneration and homebuilding.

This has allowed us to incorporate new areas,

such as the creation of Berkeley Living, our

Build to Rent platform.

We have also responded to feedback from

our people and other stakeholders by

streamlining our priority areas. This retains

the valuable content, while making the

strategyclearer and more compelling.

OUR

PRIORITIES

PLACES &

COMMUNITIES

HOMES &

CUSTOMERS

CLIMATE &

NATU R E

OPERATIONAL

EXCELLENCE

PEOPLE &

CULTURE

White City Living

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41 | BERKELEY GROUP 2026 ANNUAL REPORT41 | BERKELEY GROUP 2026 ANNUAL REPORT

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

Priority Goal Link to stakeholdersWhy this is a priority

Link

to risks

HOMES &

CUSTOMERS

Delighting our

customers with

high quality

homes and

an industry-

leading buying

and renting

experience.

— Customers

— Communities and

local government

— Government,

regulators

and industry

— Investors

Putting our

customers at

the heart of

our decisions

and creating

homes of

lasting quality is

fundamental to

our brand.

— Customers

— Communities and

local government

— Government,

regulators

and industry

— Investors

Placeshaping

can strengthen

communities

and make a

lasting positive

difference to

people’s lives.

Working in

partnership to

create unique

places where

communities

thrive and people

feel like they

belong.

— Environment

— Customers

— Communities and

local government

— Supply chain

— Government,

regulators and

industry

— Investors

We believe

every business

has a duty

to tackle

environmental

challenges, on

a local, national

and global

scale.

Transforming

underused land

responsibly

to deliver

connected, low

carbon and

resilient places

where nature

thrives.

— Employees

— Communities and

local government

— Government,

regulators

and industry

— Investors

A positive

working culture

will help our

highly skilled

people to

flourish, and in-

turn drive long-

term success.

Cultivating an

environment

where people

are supported,

empowered

and united by a

shared purpose

and values.

— Employees

— Supply chain

— Communities and

local government

— Government,

regulators

and industry

— Investors

We want

to address

housing needs

by delivering

quality

homes safely,

efficiently and

responsibly.

Running a high

performing

and productive

business, with

safe, efficient

and responsible

practices.

Key | Principal risks

Economic outlook

Land availability and planning

Liquidity and financing

Product quality and reputation

Political outlook

Attracting and retaining

talented people

Sustainability and

climate change

Cost and availability

of materials and labour

Regulation and reporting

Sales demand and

mortgage availability

Health and safety

Cyber – data and security

42 | BERKELEY GROUP 2026 ANNUAL REPORT

Our Vision in action

Our Vision helps to

move our business

and industry forward,

for the benefit of

our customers, our

partners, society

and our people.

This section highlights

key initiatives and

the progress we have

made across our

priority areas:

Key | Strategic priorities

HOMES &

CUSTOMERS

Learning from customer feedback

We deliver exceptional customer

service and quality homes by

seeking out, and learning from,

customer feedback.

Alongside surveying every

customer post completion, we

have completed pilot focus

groups at The Exchange and

Silkstream. We invited feedback

on all aspects of the pre and post

buying experience, including

communications, amenities, estate

management and specification.

Findings have been shared at our

Customer Service Committee and

a blueprint for changes agreed,

with more focus groups now

planned.

We also rolled out a live chat

service on our website, allowing

us to engage with potential

customers 24/7, and are

developing a new app to make

it even easier for customers to

leave feedback at a time that

suits them.

Award-winning customer service

Our customer service teams are

guided by Berkeley’s deeply

entrenched values; showing

great attention to detail, passion,

integrity and respect at every point.

This translates into award-winning

service that delights our customers.

We keep our customer-facing

teams up to date on best practice

through a rolling programme of

training, this year including the

use of AI and digitised processes.

Our customer service conference

brought together more than 60

leaders from across the business

with industry experts, to share

experiences and ideas.

Independent market research

agency In-house Research has

awarded us a Platinum Award for

Customer Satisfaction; the highest

level of recognition available. This

places Berkeley among the UK’s

top-performing homebuilders for

customer satisfaction for the 12

consecutive year.

Additionally, HomeViews, the only

independent review platform for

residential development in the UK,

has ranked Berkeley as the Best UK

Homebuilder for After Sales Care.

Our Platinum

Award for Customer

Satisfaction is reserved

for organisations

achieving the very

highest levels of

customer satisfaction,

reflecting outstanding

performance across

the entire homebuying

journey – from

communication and

updates, to build quality

at handover and the

support provided

through aftercare.

Tom Weston |

Chief Executive,

In-house Research

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43 | BERKELEY GROUP 2026 ANNUAL REPORT

Delivering homes for everyone

+77.9

Net Promoter Score (NPS)

compared to an industry

average of +61.4 (In-house

Research, December 2025)

97.8%

customers would recommend

us to a friend, compared to

an industry average of 93%

(HBF, March 2026)

Veterans Minister opening

Valour House, King’s Road Park

Carefully crafting

quality homes

From our stringent approach

to building safety to the final

finishes that are visible to our

customers, every detail of our

homes is carefully crafted to

ensure that they meet our

high standards for quality.

91%

of our homes had zero or

fewer than five defects, as

reported by our customers

We create mixed and balanced

communities, with quality tenure-

blind homes that cater to a range

of needs.

We have launched our first

Berkeley Living homes at

Alexandra Gate and Kidbrooke

Village. Our mission is to be a

trusted landlord of exceptional

homes in vibrant communities,

extending Berkeley’s passion for

quality, placemaking and customer

service into a seamless rental

experience.

Our masterplans prioritise early

delivery of affordable homes, and

we continue to work with partners

to accelerate their delivery on

long-term regeneration sites; this

year agreeing a deal with London

Borough of Tower Hamlets to

bring forward 223 homes for

social rent several years ahead of

schedule, supported by a grant

from the GLA.

At King’s Road Park we opened

Valour House; providing high

quality, affordable homes for

veterans and their families –

marking the biggest investment in

social rent housing for UK Armed

Forces veterans in decades. This

development, delivered with The

Stoll Foundation, provides 128

new homes, community spaces,

therapy spaces, an adapted gym

and new offices for front-line staff.

44 | BERKELEY GROUP 2026 ANNUAL REPORT

Our Vision in action continued

Placeshaping through our

Communities Framework

On every site we want to help

create a place where people feel

connected and able to influence

what is going on.

Our Communities Framework

provides a structured approach

to getting this right, based

on key principles of being

open, inclusive, long-term,

proportionate and collaborative.

This is then brought to life

through our Community Plans,

which consider the physical and

social fabric of each site, and put

the framework into action. We

currently have 45 Community

Plans in place.

Together, they help us to

design places with a carefully

considered mix of amenities, and

then to ensure that these spaces

are activated and accessible to

local people.

HOMES &

CUSTOMERS

Key | Strategic priorities

550

community facilities being

delivered on our live sites

We believe that partnership

working is the key to

creating unique places

where communities thrive.

It enables us to design

developments that respond

to local needs, promote local

interests, and foster a sense

of belonging.

Following our Communities

Framework and Community

Engagement Guidance, our

project teams run structured

programmes of engagement

with local stakeholders

from the earliest project

vision stage.

The feedback is carefully

considered by the design

team and then progress

is reported back to

the community. This

transparency is an important

aspect of community

engagement and promotes

accountability on both sides.

Engagement strategies

are adapted to each

site, and can include co-

design workshops, design

committees, and interactive

sessions with arts or

activities that help bring the

proposals to life. This can

help us to reach traditionally

unheard groups.

At Silkstream, local students

took part in a design

workshop with the project

and landscape architects,

gave feedback and shared

ideas for the public realm

and commercial spaces.

Collaborating

with local

partners

Through our Community

Plans we identify local

organisations to partner

with, so we can deliver

benefits outside of our site

boundary. We work with

these local experts to offer

time, talent and training for

people and projects that

need them most.

This means that the local

community feels the

benefits of regeneration

directly, early on in the

project.

Grand Union, Brent

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45 | BERKELEY GROUP 2026 ANNUAL REPORT

Activating green spaces

Across our developments we

deliver the green open spaces

that a strong community needs,

and we also understand the

importance of driving visitors to

them, to maximise their impact

over time.

We work collaboratively across

our community, sustainability,

estate management and

customer teams to create

interest in these parks and

landscaped spaces, so more

people feel the benefits of

connecting with nature.

This includes pop-up projects

such as the London School

of Architecture Pavillion

at Woodberry Down, and

permanent community facilities

like Men’s Sheds at Hartland

Village, supporting male

mental health.

At The Green Quarter we run a

year-round community health

and wellbeing programme, with

open-air activities that bring the

parkland to life.

Celebrating

local heritage

By preserving, restoring and

honouring the heritage of our

sites, we create places with a clear

identity, character and connection

to their past.

We do this across sites of

industrial and historical

significance, by thoughtfully

restoring heritage assets, and

delivering community events that

celebrate the site’s past through

our Community Plans.

This takes many forms including

site tours, engagement activities

with local schools, and public

events. At King’s Road Park

and Royal Arsenal Riverside

we hold remembrance events

at the war memorials, which

are an important feature of the

public realm.

On former National Grid sites

we have preserved sections of

gasholders and display them as

public art, or integrate the full

structures into building designs.

This year we completed the

restoration of the Grade II Listed

Mansion House at Trent Park, in

close collaboration with Historic

England and the Trent Park

Museum Trust. This will reinstate

public access for the first time

in decades, with a museum set

to open on the lower floors

this summer.

The Green Quarter, Ealing

Regent’s View, Bethnal Green

46 | BERKELEY GROUP 2026 ANNUAL REPORT

Our Vision in action continued

Creating jobs and training opportunities for local people

Our employment and skills

programmes are a highly

impactful way that we help local

people to feel the benefits of

regeneration early on.

Dedicated coordinators work

with community partners

to connect local people

with construction jobs and

apprenticeships directly

with Berkeley, or within our

supply chain.

We also reach out to

schoolchildren and students

around our developments,

offering site visits, presentations,

and work experience placements

to encourage them to consider

careers in construction. The

long-term nature of our

regeneration schemes means

that we see people returning

to Berkeley for work years

after our teams meet them

as schoolchildren.

We also combine our skills

programmes with community

outreach, to target vulnerable

and hard-to-reach groups. At

Bermondsey Place, in the heart

of Southwark’s Old Kent Road

Opportunity Area, we worked

with Milk Honey Bees to support

and empower local young

black women in finding a

route to work.

This also extends to our

engagement through the

Berkeley Foundation, where we

reach young people through

community partnerships,

and connect them with work

experience, training and job

opportunities.

Inspiring the next generation with apprentice ambassadors

We encourage our apprentices

to get involved in community

outreach and share their

first-hand experiences. They

attend careers fairs and panel

events, host site tours, and

support young people on work

experience placements.

Their advocacy is a powerful

tool to inspire the next

generation of talent.

HOMES &

CUSTOMERS

Key | Strategic priorities

Scan the

QR code to

hear from Milk

Honey Bees

alumni

Student visit to Lombard Square, Plumstead

Apprentices at a careers event

with Southwark College

410

skills events held with schools,

colleges and universities

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47 | BERKELEY GROUP 2026 ANNUAL REPORT

Capturing our social impact at The Green Quarter

Our experience shows that

regeneration can be a powerful

force for good, with a reach far

beyond the boundary of our

developments.

As our neighbourhoods grow,

we collect feedback from our

partners and keep records of

all the activities, initiatives,

and relationships we maintain.

Together this helps us to evidence

our positive impact, and tailor our

approach to meet local needs.

At The Green Quarter in Ealing this

has been captured in a series of

social impact reports, which shows

how meaningful partnerships with

local people and groups, together

with a bespoke Community Plan,

have brought the former gasworks

to life as a vibrant community-led

neighbourhood.

A decade into the transformation

of this 88-acre site, one of the

UK’s most ambitious regeneration

projects, we have now undertaken

our third impact report. This

included an independent review

of quality of life for residents,

which indicated that the green

open spaces positively contribute

to people’s health and happiness.

Investment in social infrastructure

managed by local organisations

has also been impactful. Parkside

Yards, operated by Open Southall,

is a hub for local businesses

that includes a multi-purpose

community space.

The Green Quarter, Ealing

>5,100

people reached during

the year

£25,000

annual Community Chest fund

>100

local students hosted for site

tours during the year

community events in the year

The community

engagement is

on another level,

with something

for everyone,

from young

children to

older residents.

A resident of

The Green Quarter

Scan the

QR code to

see the Social

Impact Report

48 | BERKELEY GROUP 2026 ANNUAL REPORT

Our Vision in action continued

>590

acres of publicly accessible

green space being delivered

on live sites

developments committed

to BNG to date

Reflecting on a decade of implementation

Berkeley became the

first homebuilder to set a

commitment to achieve a

biodiversity net gain (BNG)

on every development in 2016,

eight years before it became

mandatory for developers,

and we are now proud to

be celebrating a decade of

enhancing nature across

our sites.

In that time, our approach has

been highlighted by Government

as an example of successful

delivery, and we have shared

lessons learned with the industry.

These include recommendations

to engage on biodiversity

early, work collaboratively with

experts, incorporate a variety

of habitats to support species

diversity, and to connect nature

within the development to the

wider natural landscape.

We are now starting to see

some of our earliest BNG sites

maturing, allowing us to start

assessing the real net gain

delivered against the target

figure. Ecologists have now

revisited King’s Road Park and

a walk-over survey concluded

that Phase 1 has delivered

a BNG of 227%.

There were several lessons

learnt from this post-completion

assessment, which we are

now addressing on similar

developments:

— Use more native scrub

planting rather than

introduced and decorative

shrub;

— Introduce more areas of

meadow grassland providing

a habitat for insects and

flowers for pollinators;

— Use a wide range of grassland,

wildflower and sedum species

and include other habitat

features, such as bricks for

solitary nesting bees or logs;

and

— Enhance internal processes to

track BNG for the long term.

10 years of biodiversity net gain

Kidbrooke Village, Greenwich

Lombard Square, Plumstead

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49 | BERKELEY GROUP 2026 ANNUAL REPORT

HOMES &

CUSTOMERS

Key | Strategic priorities

Connecting people

with nature

We prioritise delivering BNG

on site, so people can enjoy the

benefits of connecting with nature

on their doorstep. We incorporate

nature in different ways, such

as wildflower meadows, nature-

based play areas, wetlands and

quiet green areas to relax in.

People are encouraged to explore

these spaces through networks

of wildlife trails, walkways and

cycle routes.

New green spaces on our live

developments include:

— Heron Wharf: 1.5-acre public

park, opening up the banks

of the River Lea for the first

time in generations, including

a mosaic habitat with areas of

rich and poor soils, and shade

and light, which supports a mix

of flora and fauna.

— Foal Hurst Green: 11.5-acre

wildflower meadow. Pollen and

nectar seeds have been sown

and wild grasses, log and brash

piles included to create natural

habitats.

— Lombard Square: 1.8-acre

park with pond and wildflower

planting.

Delivering nature-rich places

like these earned Berkeley

the Biodiversity Protection

Award at the 2025 National

Sustainability Awards.

Designing resilient

landscapes

We create habitats that are

resilient to future climate change.

This includes planting trees to

create shading, incorporating

sustainable drainage features

to reduce the risk of flooding,

and creating varied habitats that

support a diversity of species.

>45

acres of wetlands being

delivered on live sites

Long-term

management

Our BNG strategies are designed

to deliver enduring spaces

for nature. Over the year we

have begun a programme

of engagement with our key

managing agents to upskill and

prepare us for the long-term

management of BNG. In response

to their feedback we have

begun preparing a tracker for

our teams to record all habitats

and nature-related actions, to be

used in the handover to estate

management teams.

Heron Wharf, PoplarGreen Park Village, Reading

50 | BERKELEY GROUP 2026 ANNUAL REPORT

Our Vision in action continued

HOMES &

CUSTOMERS

Key | Strategic priorities

Driving down carbon

with our supply chain

By collaborating with our supply

chain we are able to realise

more significant reductions in

carbon emissions.

Over the year we held more

than 20 meetings with suppliers

and manufacturers to find

ways to drive down embodied

carbon, and to understand how

they can help us to meet our

low embodied carbon targets.

The meetings covered a

range of products including

bricks, blocks, paint, drainage

and piping. We learnt more

about where they are on their

sustainability journey and

how they are driving down

the embodied carbon of their

products. The discussions

demonstrated a shared

commitment to progress and

laid a solid foundation for future

collaboration and improvement.

Having launched our internal

guide to procuring low carbon

concrete in 2024/25, more

than 90% of the concrete

we used this year was lower

carbon. Wehave adopted

ECOPact lowcarbon concrete

at Wandsworth Mills, and have

used a low carbon steel frame

atArch &Bloom.

Measuring

and managing

water use

Taking action through our

Net Zero Transition Plan

Controlling water use is

important for the resilience of

our business, and in managing

our impact on the environment.

Our site teams follow guidance

on water efficiency for all

projects, and we are working to

reduce the risk of leaks on sites.

Our water usage fluctuates

according to variables such as

type of construction activities

and the weather. In drier spells

we use more water to reduce

dust and mitigate the impact

of construction works on

ourneighbours.

The homes we are delivering

have an average internal

water efficiency of 100.9

litres per person per day; a

16% improvement on building

regulation requirements.

Our transparency and

approach has been recognised

with an ‘A' rating from CDP for

Water Security.

We have published our Net Zero

Transition Plan, setting out a

roadmap to decarbonise our

homes, business activities and

supply chain, with the ambition

of achieving net zero emissions

by 2045.

The plan establishes how we

intend to meet our science-based

targets, revalidated in 2025, to

reduce emissions across scopes

1, 2 and 3. It is structured around

three core areas of focus: low

carbon operations, low carbon

homes and low embodied carbon.

We have reduced scopes 1 and

2 (market-based) emissions by

81% compared to 2019. New

homes are being delivered to

high levels of energy efficiency

and are designed to be net zero

ready to align with the Future

Homes Standard. We have

developed a robust, evidence-led

approach to embodied carbon,

informed by more than 80 site-

specific assessments and close

collaboration with our supply

chain. These insights are enabling

us to drive practical improvements

while maintaining build quality

andresilience.

Progressing the next phase of

Berkeley’s transition will require

continued industry collaboration,

investment, and a supportive

policy environment that enables

innovation. We will continue to

take a leading role, sharing our

experience and practical learning

to support collective progress

across the sector.

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51 | BERKELEY GROUP 2026 ANNUAL REPORT

Reducing energy use

Having successfully reduced

our reliance on carbon-intensive

energy sources and achieved

our initial science-based target

for scopes 1 and 2 emissions, we

have been focusing on lowering

overall energy consumption

across our operations and on

increasing the use of cleaner

energy sources.

This year we have prioritised

reducing out-of-hours energy

use across our sites and offices,

by setting clear internal targets,

and sharing best practices to

reduce consumption.

Additionally, we worked across

the Group to accelerate the

uptake of on-site photovoltaic

panels. We have built on our

experience with solar panels,

captured lessons learnt

and developed guidance to

support teams with their

procurement, installation

andongoingmanagement.

Planning resources

and reducing waste

This year, we have reduced our

construction waste intensity

by 13% compared to 2025.

We reviewed the waste created

on main packages of historic

projects, and identified our key

waste streams: plasterboard,

timber, metal, concrete and

bricks. Benchmarks were then set

for future packages, so project

teams can plan and predict

waste and help identify areas for

improvement where needed.

This work has informed the

development of revised waste

targets and our updated Waste

Action Plan, which focuses on

the application of the waste

hierarchy, procurement and

supply chain engagement, and

enhanced data quality and

performancemonitoring.

At Sutton Garden Square we

worked with our supply chain

to divert 70 tonnes of steel from

an existing structure on site to

bereused.

Heat pumps: preparing for the future

In preparation for the Future

Homes Standard, we reviewed

our development pipeline to

ensure our projects are aligned

with the anticipated regulatory

requirements and can deliver

low carbon heating.

Our technical teams have

worked with our consultants to

update designs, and we have

worked closely with our supply

chain to review the heat pump

installations to date.

We have also gathered

feedback from our customers to

enable us to transfer the lessons

learnt to new developments.

Responding to this customer

feedback will help us to ensure

comfort and ease of operation

for residents, as we roll out this

sustainable heating solution

more extensively.

At Silkstream we revised the

original energy strategy to

provide an exhaust air heat

pump (EAHP) for each home.

Across three buildings, totalling

254 homes, we have saved 2,610

tCO

per annum, given scope for

the newest technologies to be

incorporated on future phases,

and reduced resident service

charges related to energy.

Our customer teams have

worked closely with residents

at this development to educate

them on using EAHPs, including

creating a film about how

they work, and have collected

feedback from them on

theirexperience.

14%

reduction in scopes 1 and 2

(market-based) emissions

since2024/25

52 | BERKELEY GROUP 2026 ANNUAL REPORT52 | BERKELEY GROUP 2026 ANNUAL REPORT

HOMES &

CUSTOMERS

Key | Strategic priorities

Putting equity, diversity

and inclusion into practice

We recognise the importance

of attracting and retaining

talented people from a wide

range of backgrounds, including

those who have historically been

underrepresented in our industry.

As such, equity, diversity

and inclusion (EDI) is being

embedded within our business,

and we have taken action across

several areas this year:

— Launched a Group-wide

ethnicity network, to amplify

the voice of people from

diverse backgrounds.

— 14 employees participated in

Business in the Community's

cross-organisational

mentoring circle for people

from ethnic minorities.

— Held events celebrating

women, promoting allyship

and discussing challenges

facing women in the

workplace.

— Enrolled 10 women on The

Circle Academy, an industry-

wide female leadership

programme.

— Piloted a networking initiative

to connect female talent.

— Ran a range of LGBTQ+

network events, joined the

Pride in London parade and

sponsored industry group

Pride in Property event.

Promoting

early careers

We are a Gold member of The

5% Club, a network of leading

employers committed to ensuring

at least 5% of the direct workforce

are in 'earn and learn' positions.

We have been placed second in

The JobCrowd’s top apprentice

employer national rankings,

and first in our sector for both

apprentices and graduates.

Our pilot to create realistic pre-hire

assessments, helping to improve

retention of emerging talent, was

cited in a report by the Home

Builders Federation (HBF) and The

Careers & Enterprise Company

on how to support a stronger

talent pipeline.

We have extended our Future

Skills programme to include

T Levels, a two-year technical

qualification that requires

students to undertake a

placement of 45 days or more.

We have supported 44 T Level

students in the year, across four

different courses.

We also support the Gatsby

initiative, Talking Futures, which

aims to educate parents on the

advantages of T Levels and

apprenticeships.

8.5%

of employees in

'earn and learn' roles

Our Vision in action continued

Getting involved with

the Berkeley Foundation

Support for the Berkeley

Foundation is a core part of life

at Berkeley.

A 2026 survey of Berkeley

employees’ perceptions of the

Foundation found high levels of

pride in the Company’s support

for the Foundation, and a strong

belief in the difference the

Foundation’s work is making

in local communities.

This year, employees got

involved by fundraising,

volunteering and through

Berkeley’s successful payroll

giving scheme.

They raised £660,000 for the

Foundation and its charity

partners, and volunteered 1,980

hours of time and expertise.

We celebrated employee

involvement in the Foundation’s

work through the 2026 Berkeley

Foundation Awards, which

recognised the exceptional

contributions our colleagues

make to local charities and

communities.

Gold

2025/26

Read more about the Berkeley

Foundation on page 57

53 | BERKELEY GROUP 2026 ANNUAL REPORT

White City Living –

realising positive change through regeneration

Strategy in action

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This has been an award-winning

year for White City Living, with

accolades for the quality of

both the development and the

approach to production. Our Site

Manager accepted the overall UK

Supreme Award at the National

House Building Council’s (NHBC)

2025 Pride in the Job awards: the

third time the team has received

this top honour for excellence

across six key areas of operations.

The WhatHouse? 2025 Best

Development Award recognised

White City Living’s ‘exceptional

homes, destination-level facilities

and authentic community

integration’. One such example is

a creative project with students

of nearby Ark Burlington Danes

Academy, who have created

artwork inspired by White City

that has been displayed across

the public realm. Judges also

noted the quality of design and

hard landscaping. This has been

complemented by the addition of

the tallest building in the latest

collection at Solaris.

The project team found many

ways to make positive changes

on site this year, including driving

down waste. Working with

contractors, they have reduced

plasterboard offcuts by making

changes at the design and

installation stages.

Using a unitised façade product

has reduced in-situ construction

at White City Living, which

inherently creates less waste, and

the wooden packaging crates

have been diverted to a social

enterprise that sells timber

from construction sites.

A leak detection system has been

installed, giving the capability to

immediately identify and respond

to water wastage on site.

WhatHouse?

Awards 2025

Best Developmen

340

people reached through

community engagement

and skills programmes

this year

Scan the QR code

to read more on

White City Living

54 | BERKELEY GROUP 2026 ANNUAL REPORT54 | BERKELEY GROUP 2026 ANNUAL REPORT54 | BERKELEY GROUP 2026 ANNUAL REPORT

Our Vision in action continued

HOMES &

CUSTOMERS

Key | Strategic priorities

Leading

building safety

We have actively worked with

Government and industry

to help evolve policy and

guidance in support of the

Building Safety Act.

Berkeley leaders played a

pivotal role in shaping the

Construction Leadership

Council’s (CLC) guidance

document on the Gateway 2

submission process for high

risk buildings, which launched

in 2025, and also promoted

it within the industry. It is

positive that we have now

started to see our first

applications move through

theGateway 2 process.

We also took part in a working

group on high risk building

control, alongside the Ministry

of Housing, Communities and

Local Government (MHCLG)

and industry membership

organisations.

We have upskilled our

employees and worked with

our supply chain to ensure

we have the necessary

competencies in place to meet

its requirements. In addition,

our senior production staff

have attended mandatory

briefings to understand

Berkeley’s approach and

latest industry guidance.

Running consistently safe sites

We are committed to operating

incident and injury free. Our

approach to health and safety

is based on three core pillars:

Good Order, Good Work, and

Good Health. These guide how we

maintain the highest standards in

the physical work environment,

promote a positive culture and

behaviours, and enhance health

and wellbeing.

We continue to hold an industry-

leading Annual Injury Incidence

Rate (AIIR) for the year at 100 per

100,000 people, compared

to an industry average of 280

(HSE, November 2025).

Our high standards of health

and safety, entrenched in robust

management systems, have been

recognised by the Royal Society

for the Prevention of Accidents

(RoSPA); awarding Berkeley the

President’s Award and four Gold

awards at its 2025 Health and

Safety Awards.

In the year we held health

and safety workshops with 10

scaffolding companies to promote

best practice and reduce the risk

of incidents arising from working

at height.

>10,000

hours of training delivered on

building safety during the year

to nearly 800 employees

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02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

Engaging on product safety

This year the MHCLG issued the

Construction Products Reform

White Paper, with the objective

to ensure all products are safe

and trusted, and there is clear

accountability at every stage.

To support this, Berkeley co-

founded a Construction Products

Reform working group, providing

industry feedback on the practical

implementation challenges,

impacts and dependencies across

the construction supply chain, and

aiding effective transition planning.

We have also chaired a CLC

working group to review and

address the risks of processing

solid surface worktops containing

silica, finding practical solutions

to mitigate related health

impacts in the short term, and to

eliminate them in the long term.

Taking action on modern slavery and labour abuse

In line with government

guidance, we have identified

Berkeley’s most prominent

modern slavery risks and are

actively working with our

supply chain on ways to prevent

harm from modern slavery and

labourabuse.

All Berkeley employees are

required to complete training

on combatting modern slavery

as part of their induction to

the business, as well as tailored

sessions for project leads.

Bespoke training has also been

delivered to commercial teams,

which includes information

on modern slavery and labour

abuse, to highlight the risks in

the procurement process.

We have built upon established

relationships with our supply

chain, engaging contractors

and manufacturers on our

collaborative approach to

tackling modern slavery and

labour abuse. This includes

arranging visits to factories

or head offices.

We have also set new

commitments to help us

deepen our understanding

of the risk of labour abuse

within our extended

contractor supply chain.

Scan the QR code

to read our Modern

SlaveryStatement

Harnessing the power of AI

Digitising processes

We are using artificial

intelligence (AI) in carefully

considered ways across

our operations.

We are rolling out AI agents,

along with expert-led training

to use them more confidently

and effectively. AI technology

has been used on site to

enhance health and safety

procedures, by scanning live

sites and raising real-time alerts

on potentialrisks.

Proposals to incorporate

AI into operational reporting

have also been presented

to senior leaders by the

youth board of one of our

operatingcompanies.

Expanding

digital

collaboration

We have now fully

implemented an Electronic

Document Management

System, which allows us to

store, share and capture the

golden thread of information

more easily with our

contractors and consultants.

Our teams also continue to

use Building Information

Modelling (BIM) as a digital

collaboration tool.

We have trialled an AI-

powered tool to collect

lessons learnt and new ideas

from colleagues. We used the

digital tool to run a targeted

campaign on efficiency and

innovation, and invited teams

to give their ideas. Comments

were available for everyone to

view and vote for. The most

popular posts were presented

to senior leaders and follow-

up actions were agreed. The

project was successful and

there are now plans to roll it

out across the business.

We have trialled a digital

procurement tool, which

will bring together multiple

processes on one platform

and give a single view of

contract status, subcontractor

engagement and supply

chain risk.

We are now preparing to roll

it out more widely, to enhance

the procurement process and

collaboration with contractors

and consultants. We have also

procured an invoice automation

tool, to make our financial

processes more efficient.

56 | BERKELEY GROUP 2026 ANNUAL REPORT56 | BERKELEY GROUP 2026 ANNUAL REPORT

Our Vision in action continued

HOMES &

CUSTOMERS

Key | Strategic priorities

A safe place

to call home

Journey to

employment

Health and

wellbeing

Youth

leadership

A resilient

voluntary sector

We want to ensure

everybody in our

communities has

somewhere safe,

secure and sustainable

to call home.

We want to ensure

that all young people

are prepared for

work and have the

opportunity to build a

sustainable career.

We want to ensure

that young people

and their communities

have the support they

need to live happier,

healthier lives.

We want to ensure

that young people

are empowered to

positively impact their

own lives and the

communities in which

they live.

We want to ensure

that young people

and their communities

are supported by a

voluntary sector that

is effective, inclusive

and well resourced.

—Renewed its strategic

partnership with

Camden-based charity

New Horizon Youth

Centre, committing a

further £510,000 to

its work with young

people experiencing

homelessness

inLondon.

—Continued its

long-term strategic

partnerships with

Crisis, taking a place-

based approach to

ending homelessness

in Brent and Money

Ready, preventing

homelessness by

providing high quality

financial education for

those young people

most at risk.

—Entered its 15th year

of support for The

Change Foundation’s

training-for-work

programme, Street

Elite. It also continued

its partnership with

Imperial College

London to inspire

children and young

people to engage in

Science, Technology,

Engineering and

Mathematics (STEM).

—Increased the

employability

support on offer

through its charity

partnerships. A wide

range of Berkeley site

tours, employability

workshops, mentoring

and work experience

placements were

delivered to young

people referred by

the Foundation's

partners, culminating

in four young people

moving into work with

the business or its

supplychain.

—Continued to

support its strategic

partnerships with

The Mayor’s Fund

for London, tackling

holiday hunger among

young Londoners

and The Lord’s

Taverners, enabling

disabled young people

across the country to

participate in sport.

—Berkeley staff

raised more than

£418,000 for local

health and wellbeing

charities this year,

ranging from

inclusive sporting

opportunities to

children’s hospices.

—The Berkeley

Foundation and

Lord’s Taverners

won the National

Commitment to the

Community Award

at the Better Society

Awards 2026.

—Berkeley colleagues

assisted the

Foundation’s strategic

partner Groundwork

London with its

youth leadership

programme, providing

feedback on the

young participants’

social action projects.

—Launched a new

funding programme

targeting small-

to-medium-sized

organisations working

to build leadership

skills in young people

affected by racist or

Islamophobic violence.

—The Foundation

continued its work

with small-to-medium-

sized charities to

strengthen their

organisational

resilience, their ability

to plan for, cope

with, and respond

tochange.

—Across the 20 charities

and Community

Interest Companies

(CICs) funded through

the first two cohorts

of the Foundation’s

Resilience Fund,

over 70% increased

their income over

the course of the

partnership. On

average, participating

organisations rated

themselves 34% more

resilient by the end of

the programme.

Impact goal2026 key highlights

Scan the QR code

to find out more about

the Berkeley Foundation

£660k

raised by Berkeley employees

for the Foundation and its charity

partners through fundraising and

Give As You Earn (GAYE)

£3.3m

given to the Foundation’s

charity partners through grants,

staff fundraising and GAYE

>15,000

people reached through the

Foundation’s charity partnerships

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57 | BERKELEY GROUP 2026 ANNUAL REPORT57 | BERKELEY GROUP 2026 ANNUAL REPORT

The Berkeley Foundation

The Berkeley Foundation helps

frontline charities create change

in the communities where

Berkeley works.

The Foundation works in

partnership with a diverse range

of charities that share its goals,

from preventing homelessness

to supporting young people

into work. Its partnerships are

long-term and multi-layered,

delivering impact through flexible

funding, staff engagement

and collaborative learning

opportunities.

This year, the Foundation worked

with 35 frontline charities across

London, Birmingham and the

South of England to drive change

across its five impactgoals.

58 | BERKELEY GROUP 2026 ANNUAL REPORT58 | BERKELEY GROUP 2026 ANNUAL REPORT

ESG performance

We monitor a range of Environmental, Social and

Governance (ESG) indicators across our business activities.

Scan the QR code

for data notes and

more metrics

Indicator Metric Unit 2026 2025 2024

Link to

priorities

New homes Homes delivered, including joint ventures # 4,203 4,329 3,927

Benchmarks

and indices

CDP Climate Change questionnaire Rating A B A

FTSE4Good Index Series listed company Y/N Y Y Y

ISS ESG Corporate Rating Rating B- B- B-

MSCI ESG Rating Rating AAA AAA AAA

S&P Global Corporate Sustainability Assessment #/100 74 69 56

Sustainalytics ESG Risk Rating (Note: smaller

values indicate lower risk)

Rating 12.5

(Low)

12.8

(Low)

14.0

(Low)

Environmental

Indicator Metric Unit 2026 2025 2024

Link to

priorities

Environmentally

responsible

operations

Number of environmental prosecutions # 0 0 0

Monetary cost of environmental fines, penalties

and enforcement undertakings

£#,000 125 0 0

Scopes 1 and 2 (location-based) emissions tCO

e 3,853 5,027 5,245

Scopes 1 and 2 (market-based) emissions tCO

e 773 896 917

Water withdrawals m

179,330 166,773 182,285

Total waste generated (including construction,

demolition and excavation wastes)

tonnes 307,591 274,747 388,765

Total waste diverted from landfill % 99 96 96

Sustainable

homes

Homes delivered on brownfield land % 90 92 87

Completed homes with an Energy Performance

Certificate (EPC) rating of at least B

% 96 95 93

Average EPC score and rating of completed homes # 85 (B) 84 (B) 84 (B)

Completed homes with an Environmental Impact

Rating (EIR) of at least B

% 98 96 96

Average Dwelling Emission Rate (DER)

of completed homes

kgCO

/yr

11.76 12.45 12.08

Average internal water efficiency

of completed homes

lpppd 100.9 102.2 101.2

Completed homes with internal recycling facilities % 94 100 100

Sustainable

places

Developments newly committed to deliver

biodiversity net gain (BNG)

# 1 2 1

% 100 100 100

Live development sites regenerating

brownfield land

% 75 72 75

Live development sites with sustainable drainage

systems (SuDS) being provided

% 100 100 100

Live development sites with cycle storage

being provided

% 100 100 100

Live development sites with electric car charging

infrastructure being provided

% 98 98 98

HOMES &

CUSTOMERS

Key | Our Vision priorities

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02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

Social

Indicator Metric Unit 2026 2025 2024

Link to

priorities

Customer

experience

Six-month rolling average NPS (to March 2026) # 77.9 81.6 80.2

Customers who would recommend us to a friend

(to March 2026)

% 97.8 98.2 97.7

Quality Homes with five or fewer defects reported by

customers on completion

% 91 93 91

Society and

community

contributions

Contribution to UK GDP, including through direct

activities by Berkeley, indirectly through supply chain

spend and the induced effect of household spend

£bn 2.7 2.7 2.5

Contribution to UK tax, including taxes paid directly

by Berkeley and the taxes paid by customers and

suppliers as a result of Berkeley activities

£m 805 760 800

Contribution to facilities and services for local

communities, including affordable housing subsidies

£m 530 580 370

UK jobs supported annually directly and indirectly

through the supply chain

#,000 27 27 24

Charitable

giving and

the Berkeley

Foundation

Employees involved with Give As You Earn (GAYE) % 26 27 29

Employees involved with Berkeley Foundation

activities in the year

% 59 58 61

Skills and

training

Average monthly percentage of direct workforce

who are graduates, direct apprentices or sponsored

students undertaking formal training

% 8.5 8.7 9.5

Graduates joining the business via Berkeley’s

Graduate Scheme programme

# 23 29 21

Average monthly number of directly

employed apprentices

# 92 107 151

Health and

safety

AIIR per 100,000 people – direct employees and

on-site contractors

# 100 102 52

AIIR per 100,000 people – direct employees only # 0 39 36

AIIR per 100,000 people – on-site contractors only # 138 124 57

Work-related fatalities – direct employees and

on-site contractors

# 0 0 0

Accident Frequency Rate (AFR) per 100,000 hours

– direct employees and on-site contractors

# 0.04 0.05 0.02

Supply chain Average number of days taken to pay suppliers # 26 29 29

Average monthly number of on-site contractors #,000 6.5 7.3 8.8

Governance

Indicator Metric Unit 2026 2025 2024

Link to

priorities

Board of

Directors

Executive Directors # 3 2 2

Independent Non-Executive Directors # 7 7 7

Board of Directors – Male % 50 56 56

Board of Directors – Female % 50 44 44

Average tenure of Board of Directors yrs 6 7 6

Employees

(as of 30 April)

Total employees # 2,438 2,552 2,610

Total employees – Male % 59 60 62

Total employees – Female % 41 40 38

Non-Board senior management – Male

% 40 50 50

Non-Board senior management – Female

% 60 50 50

Reporting to Board or senior management – Male % 66 65 68

Reporting to Board or senior management – Female % 34 35 32

Metrics include joint venture activities.

Context to the figure reported for 2026 is provided on page 74.

2 Figures for ‘completed homes’ cover those that have legally completed, plus those completed for Berkeley Living.

3 Defined as those on the Executive Committee (as detailed on page 105) that are not members of the Main Board.

60 | BERKELEY GROUP 2026 ANNUAL REPORT60 | BERKELEY GROUP 2026 ANNUAL REPORT

Climate-related disclosures

Berkeley aims to play an active role

in tackling the global climate emergency.

Taking action on climate change

is vital to the resilience of our

business and our communities. In

recognition of this, it forms a key

part of our responsible business

strategy, Our Vision.

Having achieved our initial scopes

1 and 2 science-based target (SBT)

seven years early, this year we

secured validation from the Science

Based Targets initiative (SBTi)

for updated near-term targets to

2034 and a net zero goal for 2045.

These targets were the first by a

UK homebuilder to meet the SBTi

Buildings Criteria following their

publication for use by the sector.

Our recently published Net

Zero Transition Plan details a

20-year roadmap to help us

achieve our ambitious target for

net zero greenhouse gas (GHG)

emissions across our entire value

chain by 2045. It is holistic and

transformative, encompassing our

direct business operations along

with the design of the new homes

and places we create. We know

that our strategy will evolve as we

respond to unforeseen challenges

and opportunities over the next

two decades. The transition will

require significant changes which

we cannot deliver alone; working

in partnership with our supply

chain and wider industry is key

to our success on this long and

complex journey.

In developing our climate-related

disclosures, Berkeley has reviewed

the TCFD report Recommendations

of the Task Force on Climate-

related Financial Disclosures,

including the 2021 Annex detailing

Guidance for All Sectors and

Supplemental Guidance for

Non-Financial Groups in relation

to Materials and Buildings. We

are pleased to confirm that our

disclosures are consistent with

these guidelines and align with the

UK Listing Rules (as referred to in

UK Listing Rule 6.6.6R (8)).

Our reporting covers many of

the requirements detailed within

UK Sustainability Reporting

Standards (SRS) S2 Climate-related

Disclosures, published in February

2026. This includes reference to

industry-based disclosure topics

defined in the Industry-based

Guidance on Implementing IFRS

S2, derived from SASB Standards.

Supplementing the content of

this report, Berkeley responds to

CDP’s corporate questionnaire

on an annual basis. This year we

were awarded a place on CDP's

prestigious corporate ‘A List’

for climate change, recognising

leadership level ambition,

transparency and performance.

We are delighted to have also

been named a CDP Supplier

Engagement Leader for our work

with the supply chain (see pages

50 and 64).

Climate progress

Ensuring that we take action

in relation to climate change

is not new to Berkeley,

with key milestones as follows:

2010

Set our first scopes 1 and 2

reduction targets as part of the

launch of Our Vision.

2014

Completed climate change

adaptation risk exercise identifying

flooding, overheating and water

shortage as the key risks forthe

homes and places we develop.

2016

Designed all new homes from this

date to incorporate climate change

adaptation measures.

2018

Initiated backing 100% of our

UK electricity consumption with

Renewable Energy Guarantees

of Origin (REGOs), with this

continuing to date.

2019

Undertook research on

designing low carbon homes and

implemented outcomes.

2020

Achieved validation from the SBTi

for our first SBTs, including a scope

3 intensity target.

2022

Undertook our first embodied

carbon assessments and completed

climate scenario analysis.

2024

Introduced a detailed supply chain

engagement strategy for high

impact material groups.

2025

Revised transitional risks and

opportunities through updated

climate scenario analysis.

Submitted energy reduction action

plan under ESOS.

Assessed heat pump technologies

to determine the most appropriate

for use in our homes.

2026

Received SBTi validation for new

absolute SBTs across scopes 1, 2

and 3, including a net zero target.

Published a Net Zero Transition Plan

aligned with our updated SBTs.

Awarded an ‘A’ rating from CDP

for climate change transparency

and performance.

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Theme Page reference Summary

Governance

61 to 62

• The Board is provided with climate action progress updates each quarter through

Our Vision reporting.

• CEO is the lead sponsor for climate action.

• CEO, CFO and COO attend monthly Our Vision and Sustainability Board meetings

covering key climate actions including targets and progress on our transition to

net zero.

• Executive Committee and Senior Leadership Team receive updates from the Group

Executive for Responsible Business on Our Vision, including Climate & Nature.

• Group Executive for Responsible Business and Group Head of Sustainability meet

with Group operational committees, divisional management teams and operational

sustainability teams to review progress and plan next steps.

• Climate-related matters are assessed at development level which informs strategic

business planning activity.

Strategy

63 to 65

• Our Net Zero Transition Plan is defined across three areas of focus and involves

engagement with stakeholders, in particular those across our industry, supply

chain and Government.

• Climate change monitored as part of the Group’s risk managementprocesses.

• Climate scenario analysis has identified key transitional risks in the short term

(0–2years) to medium term (to 2030) and physical risks in the long term (to 2050),

based on financial impacts and probabilistic loss modelling where possible.

• Consideration of climate change in preparing our Financial Statements is detailed

in Note 1.3 on page 185.

Risk

Management

66 to 71

• Climate scenario analysis completed in 2022, with transitional risks and

opportunities reviewed and updated in 2025.

• Main Board, Group Executive for Responsible Business, Group sustainability team

and operational teams all form part of the process to identify risks and assess their

relative importance, combining a top-down and bottom-up approach.

• Group Executive for Responsible Business and Group sustainability team manage

strategic compliance with evolving requirements.

• Divisional management teams embed risk management in our day-to-day

operations, integrating mitigation measures for each development as required.

Metrics

and Targets

72 to 76

• Science-based targets in place for scopes 1, 2 and 3 GHG emissions with

performance against these monitored and disclosed.

• Relevant key industry-based metrics identified and reported.

Governance

Involvement of our

CEO and other key

senior management

with responsibility for

climate action across

all levels and aspects

of the business is key

to the success of our

governance structure.

To provide a governance

framework for our approach,

Berkeley has an overarching

Climate Change Policydetailing

guiding principles of action.

Delivery of these is driven through

our Climate & Nature priority

area of Our Vision, incorporating

the Net Zero Transition Plan

and supported by Sustainability

Standards. These set out Berkeley’s

minimum requirements for our

homes and developments, as

well as our site and supply chain

activities, covering topics such as

energy efficiency, risk mitigation

measures and reporting. They

help to ensure that we are aligned

to deliver the key milestones and

strategic actions outlined within our

transition plan. Management tools

are in place to monitor action

and performance.

For example, each development

uses a Project Sustainability

Strategy to track compliance

with the Sustainability Standards

from land purchase through to

completion, whilst our online

data management system

allows for live reporting of GHG

emissions from our site, office,

sales and Berkeley Living landlord

activities to assess progress

against our scopes 1 and 2 SBT.

Our management tools enable

the regular communication of

performance across the business,

enabling insights and areas for

further action to be identified

and discussed.

62 | BERKELEY GROUP 2026 ANNUAL REPORT62 | BERKELEY GROUP 2026 ANNUAL REPORT

Climate-related disclosures continued

Berkeley’s governance structure for monitoring climate-related risks and opportunities, implementing

strategic actions to address these and monitoring performance is summarised below.

Key | Management roles with responsibility for climate action

Chief Executive

Chief Financial Officer

Chief Operating Officer

Group Executive for Responsible Business

Group Head of Sustainability

Main Board Level

Board of Directors Audit Committee

— Overall responsibility for oversight of our strategy and

management of climate-related risks and opportunities.

— Monitor progress towards strategic climate targets, with Board

reports including action taken and planned next steps.

— Review Group Risk Management Report presented at each Board

meeting, with sustainability and climate change considered as a

principal operating risk.

— Undertake annual assessment of principal and emerging

risks, along with the adequacy and effectiveness of internal

control systems.

— Oversight of Company-wide risk management process.

— Consider climate change impacts on the financial reporting

judgements and estimates in the Financial Statements

(seepage126).

Executive Management Level

Chief Executive Executive Committee and

Senior Leadership Team

Our Vision and

Sustainability Board

1 2 4 53

— Designated as accountable lead sponsor

for the Climate & Nature strategic

priority under Our Vision.

— Review climate-related commitments

and actions to ensure that they are

ambitious and appropriate for

the business.

— Review and sign off detailed plans and

specifications of each development,

from land purchase through all stages

ofdevelopment.

— Assess and manage strategic and

operational risks.

— Discuss progress under the Climate

& Nature priority area and measures

to be implemented to further drive

improvement.

— Consists of CEO, CFO, COO, Group

Executive for Responsible Business and

Group HeadofSustainability.

— Meet monthly with Climate & Nature a

key topic on each agenda.

— Discuss progress against goals and

targets to agree planned next steps.

Group Level

Group Risk Function Group Responsible Business

and Sustainability Teams

Group Committees

andWorkingGroups

— CEO ensures the appropriateness of

theGroup’s risk management strategy.

— CFO leads on strategic risk

management, including oversight of

climate scenarioanalysis.

— Head of Risk manages Group risk

process and register, with sustainability

and climate change identified as a

principal operating risk.

— Identify strategic climate change risks

and opportunities facing the Group and

communicate these to the Head of Risk.

— Develop targets and strategic climate

action, including our transition to

netzero.

— Integrate actions into day-to-day

activities.

— Actively collaborate with external

experts and industry working groups.

— Operational committees (e.g. Technical

Committee and Sustainability

Committee) consisting of senior

representatives from each of our

businesses meet regularly, with climate

action raised by the attending Group

Executive for Responsible Business and/

or Group Head of Sustainability.

— Cross-disciplinary working groups

take action in specific areas, such as

embodied carbon and implementation

of the Future Homes and Buildings

Standards, guided by the Group Head

ofSustainability.

Operational Level

Divisional Management Teams Operational Sustainability Teams Development Project Teams

— Responsible for climate action in relation

to the specific developments of their

business.

— Nominate a local management sponsor

for Climate & Nature.

— Maintain a risk register for their business,

which includes sustainability and climate

change risks.

— Communicate business performance

to CEO and CFO at divisional

boardmeetings.

— Meet with Group Executive for

Responsible Business and Group

Head of Sustainability to identify

improvementareas.

— Dedicated sustainability practitioners

within each business.

— Support local management and

development teams to implement Group

Sustainability Standards and drive action

to achieve continual improvement.

— Collaborate with the Group responsible

business and sustainability teams.

— Monitor performance and present this

to the divisional management and

projectteams.

— Ensure Environmental Risk Register

in place throughout the lifespan of a

project, to identify and control risks

from land purchase through to design

andconstruction.

— Manage day-to-day energy efficiency,

implementation of new measures and

achievement of targets.

— Report key data and actions to enable

monitoring of Group-wide performance.

1 2

43 5

1 2 4 53

4 5

1 2 43

4 5

LOW CARBON

OPERATIONS

LOW CARBON

HOMES

LOW EMBODIED

CARBON

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63 | BERKELEY GROUP 2026 ANNUAL REPORT63 | BERKELEY GROUP 2026 ANNUAL REPORT

Strategy

Our commitment to

becoming net zero by

2045 and addressing

climate risks and

opportunities is

underpinned by our

Climate & Nature priority

under Our Vision.

Decarbonisation ambitions

Berkeley’s Net Zero Transition

Plan provides a roadmap

for achieving our net zero

target, whilst responding

to key transitional risks and

opportunities for the business.

Climate scenario analysis

indicates that as we navigate the

implementation of the Future

Homes and Buildings Standards

in the short term, Berkeley has

higher exposure to transition risks

linked to planning and design

requirements and the substitution

of existing technologies with

lower emission options.

In the medium term, Berkeley

mayadditionally be more exposed

to higher raw material costs as a

result of carbon pricing policies

and the transition actionsof

our suppliers. A change in

customer demands is a moderate

opportunity in the medium term

should considerations suchas

energy efficiency become

increasingly important to

customers within their buying

andrenting decisions.

Berkeley’s Net Zero Transition

Plan details key milestones and

actions under three areas of focus

which align with these risks and

opportunities, along with our

SBTs: low carbon operations; low

carbon homes; and low embodied

carbon. The plan is based on our

current understanding of the

industry’s decarbonisation routes

and will be regularly reviewed

to ensure that it reflects the

evolving capabilities of our value

chain and changes to key risks

andopportunities.

We are committed to reporting

progress transparently. Highlights

for the year can be found on

pages 50 to 51.

Why this is a focus

We have the greatest ability to reduce

scopes 1 and 2 emissions related to the

energy used during our construction,

sales, office, vehicle fleet and Berkeley

Living landlord activities as these are

under our direct control.

Almost half of our scope 3 emissions

target relates to the regulated energy

use (such as heating, hot water and

lighting) of the homes that we are

creating for our customers.

Just over half of our scope 3 emissions

target relates to embodied carbon

arising from the activities of our supply

chain, from the energy used to extract

raw materials, processing these into

construction products and transporting

to site.

Key action areas

• Energy efficiency

• Renewable technologies

• Alternative fuels

• Electric and hybrid machinery

and fleet

• Low carbon heating and

cooling systems

• Fabric efficiency

• Electric-led systems through the use

of heat pumps and other renewable

technologies

• Decarbonisation of existing

heat networks

• Energy demand management

• Embodied carbon measurement

• Efficient design measures

• Manufacturer and supplier

performance and engagement

• Lower carbon materials and product-

specific carbon data

Link to business model

Building new homes and places Designing and planning new homes

and places

Building new homes and places

Marketing and selling new homes

Designing and planning new homes

and places

Building new homes and places

Link to transition risks and opportunities

Pricing of GHG emissions Planning and design requirements

Substitution of existing technologies

Change in customer demands

Planning and design requirements

Raw material costs

Scan the QR code to read

our Net Zero Transition Plan

64 | BERKELEY GROUP 2026 ANNUAL REPORT

Engagement

We aim to ensure that our

decarbonisation efforts include a

fair and equitable ‘just transition’

that identifies potential effects on

our stakeholders.

As detailed in our transition

plan, progress will be subject

to dependencies such as

reforms to the power system

and industry-wide shifts to low

carbon alternatives for materials,

processes and technologies.

There are also the following

immediate challenges:

— Low numbers of suppliers and

contractors that measure their

emissions or have SBTs and

transition plans, particularly

across smaller companies.

— A changing policy and

regulatory landscape

for housing.

— Lack of capacity in the electricity

grid to connect new homes.

— Customer concerns around costs

and operational changes for non-

traditional heating solutions.

Collaboration is key to

addressing challenges, risks and

opportunities, and ensuring a

just transition. Recognising this,

Berkeley proactively engages

with key stakeholders, with key

activities as detailed below.

Our supply chain engagement

on the transition to a net zero

economy has led to Berkeley

being named as a CDP Supplier

Engagement Leader.

Climate-related disclosures continued

Stakeholder impacts Key engagement activities

Link to climate risks

and opportunities

Supply chain

Taking action to reduce

emissions will be a

challenge for our supply

chain, requiring the

adaptation of operations

and skills, whilst

minimising social impacts

such as inequalities or

job losses.

• Our Common Materials Strategy for key material groups

includes embodied carbon and other sustainability

requirements alongside technical compliance and quality.

• Detailed supply chain engagement for high impact materials

(concrete, steel, aluminium, glass and bricks) to assess the

maturity of key suppliers in their decarbonisation journey.

• Sustainability Standard for on-site contractors includes

requirements in relation to energy and carbon reporting, as

well as minimum energy efficiency measures.

• Partner of the Supply Chain Sustainability School, including

acollaboration project to deliver training to the supply chain

and SMEs on net zero.

Raw material costs

Substitution

of existing

technologies

Skills availability

to deliver low

carbonhomes

Government, regulators

and industry

We acknowledge the

need for a coordinated

industry approach and

that regulation can help to

drive this. Inconsistencies

can lead to a lack of trust

and investment, delaying

progress.

• Actively respond to Government consultations to share our

insights and experience on topics such as efficient design

standards and energy strategies.

• Meet with local and national Government representatives

and host visits to our development sites to directly engage

and demonstrate challenges andprogress.

• Active participants in industry working groups including the

UKGBC, FutureHomes Hub and CIBSE.

Planning

and design

requirements

Substitution

of existing

technologies

Customers and

communities

Solutions to address

climate change should not

come at an unaffordable

price to our customers

or negatively impact the

communities we help

tocreate.

• Development-specific information provided, including

climatechange mitigation and adaptation measures.

• Home demonstration given at handover to ensure that

customers are aware of technologies integrated into their

home and efficiency measures to reduce costs.

• Customer feedback used to provide insight into

technologies such as heat pumps.

Change in

customer

demands

Substitution

of existing

technologies

Employees

The transition to a low

emissions economy will

impact our workers due

to the rapid change in

required skills. We will

invest in training and

competency to manage

our transition.

• Sustainability training provided to all employees, with

subject-specific training (e.g. embodied carbon, Future

Homes

and Buildings Standards requirements) provided to

relevant departments.

• Awareness campaigns andinternal intranet to share best

practice.

Skills availability

to deliver low

carbonhomes

Kidbrooke Village, Greenwich

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Climate resilience

Berkeley recognises that whilst

many organisations have plans

in place to transition to a low

carbon economy, climatic changes

will occur and may affect our

operations, in addition to the

homes and places we develop.

Present day exposure to physical

risks has been assessed, with

changes in the long term (to

2050) considered in recognition

that physical risks can manifest

themselves over a longer

period. With low exposure to

physical risks in the present day,

climate scenario analysis shows

that areas in which Berkeley’s

developments are located will

see more heatwave days and a

corresponding increase in the

occurrence of prolonged drought

stress by 2050 under a 4°C ‘Hot

House World’ scenario.

Changes in precipitation

patterns with drier summers and

wetter winters could augment

the prevalence of subsidence

conditions, whilst sites at risk of

flooding could flood more often.

Key risks identified through

climate scenario analysis, such

as subsidence and flood risk, are

assessed prior to land acquisition,

with mitigation measures

implemented as necessary.

Our Sustainability Standards

additionally set minimum

requirements, including the

provision of sustainable drainage

systems (SuDS) and targeting

internal water efficiency levels

below building regulations,

delivered through the integration

of water efficient fixtures and

fittings. Measures such as these

help to ensure the resilience of

our homes and communities in a

changing climate.

Acknowledging the intrinsic link

between nature and climate,

Berkeley pioneered biodiversity

net gain (BNG) in our industry

from 2017 and follows an

integrated water management

approach whereby rainwater is

stored and released into natural

features to help manage surface

water, also reducing the urban

heat island effect.

Climate-related disclosures continued

66 | BERKELEY GROUP 2026 ANNUAL REPORT

Risk management

Berkeley recognises

climate change within its

principal operating risks.

Our regular process to identify

and assess climate-related risk is

incorporated within the Group’s

risk management framework,

combining a top-down strategic

review and a bottom-up review

(see page 81).

The Group Executive for

Responsible Business and Group

Head of Sustainability identify and

monitor strategic climate-related

risks and opportunities facing

Berkeley through the evaluation

of: evolving legislation, regulation

and policy; customer feedback;

and industry and global trends.

Risks and opportunities are

identified for the short to medium

term (e.g. evolving planning and

design requirements) and long term

(e.g. transition to net zero carbon).

The risks and opportunities cover

our upstream value chain (such

as material costs), our direct

operations, and the impact on our

customers of a changing climate.

Identified risks and opportunities

are shared with the Head of Risk

and reported on at each Board

meeting, with feedback provided

back down the business to

operating companies.

To help ensure ongoing resilience,

our climate-related strategies are

regularly reviewed by the Group

Executive for Responsible Business

and Group Head of Sustainability,

along with Group operational

committees and working groups.

Where necessary, key processes

and controls such as our

Sustainability Standards

are updated.

A fundamental principle of the

operating structure of Berkeley

is that the prime responsibility

for assessing, managing and

monitoring the majority of

operational risks rests with

divisional management teams,

ensuring that risk management

is embedded in our day-to-day

operations. At a development level,

the site-specific Environmental

Risk Register and Project

Sustainability Strategy identify

risks and monitor action taken to

mitigate these from land purchase

through to completion.

Hareshill, Fleet

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67 | BERKELEY GROUP 2026 ANNUAL REPORT

Climate scenario analysis

Supplementing our regular

approach to risk management,

Berkeley undertakes climate

scenario analysis to assess risks

and opportunities relating to

the transition to a lower carbon

economy and the physical

impacts of climate change.

Climate scenario analysis is

overseen by the CFO, the Group

Executive for Responsible

Business and the Group Head

of Sustainability.

Selected climate scenarios

draw from widely used,

publicly available and peer

reviewed sources, including the

Intergovernmental Panel on

Climate Change (IPCC) sixth

assessment report (AR6) and

projections by the International

Energy Agency (IEA) as

summarised below.

The scenarios selected are not

intended to be forecasts for the

future, but provide mechanisms to

assess plausible outcomes against

which Berkeley can assess its risks

and opportunities.

The results of climate scenario

analysis are periodically updated

to ensure continued relevance.

Transition risks

and opportunities

In 2025, we reviewed climate

scenario analysis for transitional

risks and opportunities with the

support of Aon. The aim was to

revisit and update the original

outputs from our 2022 analysis,

based on a below 2°C orderly

transition. The results of the 2025

review remain relevant for 2026.

Transition risks and opportunities

were assessed in relation to

aggressive climate mitigation

measures in both the short term

(0–2 years) and medium term

(to 2030). Berkeley is considered

to have higher exposure to the

transition risks and opportunity

detailed on pages 68 to 69, albeit

none of these are considered

individually material in the context

of the Group’s current year

financial statements.

Berkeley has been assessed as

having lower exposure to the

following:

— Risks: Pricing of GHG

emissions; Climate-related

reporting obligations; Change

in customer demands;

Electric vehicle use; Investor

perceptions; Cost of capital;

Climate change litigation;

Skills availability to deliver

low carbon homes.

— Opportunities: Electric

vehicle use; Cost of capital;

Investor perceptions;

Employee perceptions; Other

stakeholder perceptions.

Details on the above can be found

in our climate scenario analysis

methodology online.

Physical risks

Berkeley undertook climate

scenario analysis for physical

risks with the support of WTW

(formerly Willis Towers Watson) in

2022. The results of this analysis

are still considered to be relevant

as we continue to develop across

London, Birmingham and the

South of England.

Physical risks have been assessed

from present day over the long

term to 2050, with the latter

being when the most significant

impacts are likely to manifest.

The table on pages 70 to 71

summarises the predominant

physical risks for the IPCC 1.5°C

(RCP 2.6) and 4°C (RCP 8.5)

scenarios. Risk exposure details

are for 2050 and beyond under a

4°C scenario.

Probabilistic loss modelling was

used to analyse the financial

impact of acute risks (windstorm

and flood) before any mitigation

or adaptation measures, and

irrespective of insurance or other

recovery or consideration of

financial responsibility for any

such losses.

As Berkeley already insures

against potential losses from

catastrophic events, the primary

cost exposure for Berkeley under

a 4°C scenario could be an

increase to insurance premiums

for assets under construction.

Scan the QR code

to read more about our

climate scenario analysis

methodology

Summary of scenarios

1.5°C scenario

IEA Net Zero

Emissions by 2050

and IPCC RCP 2.6

— Actions are taken

to reduce emissions

in the short term

and consequently

high transition risk is

experienced.

— Physical risks are less

severe than under

the 4°C scenario and

broadly similar to the

2°C scenario.

Below 2°C scenario

IEA Sustainable

Development

Scenario (SDS)

— Actions are taken

to reduce emissions

in the short term,

albeit slightly less

aggressive than the

1.5°C scenario, and

consequently high

transition risk is

experienced.

— Physical risks less

severe than under

the 4°C scenario and

broadly similar to the

1.5°C scenario.

4°C scenario

IPCC RCP 8.5

— Increased level of

warming associated

with greater levels

of acute and chronic

weather events.

— Geographic climatic

shift in the South East

of the UK.

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Transition risks

Key | Exposure Low Moderate High

Risk description Risk exposure and potential impact Mitigation strategy

Planning and design

requirements become

increasingly stringent as

part of the UK’s efforts

to reach net zero and

broader sustainability-

related targets.

Short term

Medium term

As part of efforts to meet its net zero target, the UK is introducing increasingly

stringent requirements related to sustainability through policy and legislation,

such as the Future Homes and Buildings Standards.

Due to the long-term nature and scale of Berkeley’s developments often

requiring the use of masterplan-led energy strategies, we are particularly

affected. In the short to medium term, homes on future phases of

developments that are under construction may require a different heating

solution from those originally planned. For example, switching to the

installation of air source heatpumps. Cost impacts could be incurred through

the substitution of existing technologies, as described below.

Operational committees of relevant functions (Land and Planning, Technical and Sustainability) monitor and

discuss the evolving regulatory landscape and impacts on the business, taking action as required. To negate

potential additional cost impacts, emerging requirements form part of development appraisals at the land

purchase stage.

We also participate in industry initiatives such as the Future Homes Hub, established to facilitate the

collaboration needed within and beyond the new homes sector to help meet the climate and environmental

challenges ahead.

Substitution of existing

technologies with lower

emission options will

be required across our

developments to comply

withregulations.

Short term

Medium term

Electrification of residential heating is fundamental to the Future Homes

Standard. The need to increase the capacity of the UK’s electricity

infrastructure may lead to constraints or additional costs. In addition, the

principle of ‘sleeving’ heat networks may particularly impact Berkeley, requiring

us to upgrade existing energy centres on our major regeneration sites with

heat pump technologies. There is the risk that technologies selected at the

outset of a planning process could become outdated and obsolete through the

development process and upon building completion. Should the technology

selected for our developments not perform as expected, there is the risk of

customer dissatisfaction and reputational damage.

The potential financial impact of this risk could be £1 million to £10 million in

the short to medium term.

Berkeley continually assesses nascent technologies and is incorporating heat pumps and photovoltaics

within its designs. Following comprehensive analysis of suitable options using ‘live-in’ trials at our Heron

Wharf development, we have identified the most appropriate exhaust air heat pumps (EAHPs) for use within

our homes.

At the same time, Berkeley is increasing customer engagement on the adoption of new technologies and

sharing feedback across the business to inform sales and customer service processes (see page 51).

We are engaging with relevant parties to ensure that necessary localised infrastructure upgrades are in place

to support additional electrical loads, whilst noting that there is also a dependency on the national electricity

grid to decarbonise.

Raw material costs could

increase if suppliers pass

through the impact of

carbon pricing for high

embodied carbon building

materials, or if demand for

low carbon alternatives

outstrips availability.

Short term

Medium term

Key materials such as steel, concrete, cement and glass have energy intensive

production processes which could require increased energy input costs or be

subject to carbon tax regimes under low carbon emission scenarios. These and

the cost of suppliers implementing mitigation measures as part of their own

transition plans may be passed on tocustomers, including Berkeley.

Demand for lower carbon or sustainable alternatives may increase and outstrip

supply, potentially leading to increased costs and issues with lead-in times.

The potential financial impact of this risk could be less than £1 million in the

short term and £1 million to £10 million in the medium term.

Berkeley has a diverse supply chain drawing material from a wide range of suppliers and we regularly

assess material costs as part of development appraisals. We have more than 90 manufacturer design and

service level agreements to maintain high standards and continuity of supply regardless of changing and

unpredictable market conditions.

To help inform the efficient design of our buildings, embodied carbon assessments are undertaken. We also

use our supply chain engagement strategy to understand and drive down embodied carbon, forming Group-

wide agreements that enable us to access lower carbon alternatives at no or limited impact on costs

and programme.

Transition opportunity

Opportunity description Risk exposure and potential impact Realisation strategy

Change in customer

demands may lead to

an opportunity whereby

homes and buildings

with strong sustainability-

related credentials

arepreferable.

Short term

Medium term

Whilst in the short term the scale of opportunity for higher demand is not

necessarily significant, as climate awareness and energy prices increase,

customers (including purchasers and those within the rental market) are

expected to favour homes and buildings with greater energy operational

efficiency. In addition, customer preference for new buildings with the latest

technologies could further support demand.

The potential financial impact of this opportunity could be less than £1 million

in the short term and between £1 million to £10 million in the medium term.

Berkeley’s focus on urban, brownfield regeneration is inherently more sustainable. Through our climate

actions and implementation of Sustainability Standards we look to positively influence customer demands.

For example, in 2023 we seta requirement for all new homes (excluding refurbishments) to meet a minimum

Energy Performance Certificate (EPC) rating of B, aligning to the requirements of many of the green

mortgages being offered by lenders.

We actively communicate sustainable features to customers throughout our sales process and plan to extend

this approach to our future rental customers, providing accessible and home-specific information.

Climate-related disclosures continued

02–93 | STRATEGIC REPORT 94–161 | CORPORATE GOVERNANCE 162–234 FINANCIAL STATEMENTS

69 | BERKELEY GROUP 2026 ANNUAL REPORT69 | BERKELEY GROUP 2026 ANNUAL REPORT