2025 ANNUAL REPORT

Homes

Communities

People

The Berkeley Group Holdings plc 2025 Annual Report

Contents

STRATEGIC REPORT

CORPORATE GOVERNANCE

FINANCIAL STATEMENTS

Read more on

pages 02 to 91

Read more on

pages 92 to 167

Read more on

pages 168 to 237

Gasworks revival

wins global

design award

Regent’s View, by St William and

RSHP, has been named ‘Best

Future Residential Project’ at the

2024 World Architecture Festival.

The site’s two Victorian

gasholders are being carefully

restored to form the centrepiece

of the new neighbourhood,

with five distinctive cylindrical

buildings providing 555 private

and affordable homes, as well as

45,000 square feet of commercial

and community space.

Now under construction, the

project will open up a stretch of

Regent’s Canal and create new

green open spaces in the heart

of Bethnal Green.

The former Bethnal Green gasworks

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.

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 06 and 07

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BERKELEY GROUP 2025 ANNUAL REPORT | 01

Strategic

Report

Pages 02 to 91

02 | BERKELEY GROUP 2025 ANNUAL REPORT

STRATEGIC REPORT

04 | Highlights of the year

06 | Brownfield regeneration

at scale

08 | Driving growth and value

10 | Case study: Grand Union

12 | Our business model

14 | Chairman’s Statement

16 | Chief Executive’s Review

26 | Market overview

29 | Trading and Financial Review

32 | Key Performance

Indicators(KPIs)

34 | Responsible business

at a glance

36 | Our Vision 2030

strategyoverview

38 | Our Vision 2030 progress

56 | ESG performance

58 | Climate-related disclosures

76 | Section 172(1) Statement

77 | Non-financial and Sustainability

Information Statement

78 | How we manage risk

81 | Viability Statement

82 | Risk tables

Prince of

Wales Drive,

Wandsworth

Set within 2.5 acres of beautifully

landscaped gardens, Prince of

Wales Drive has transformed

a former industrial site into a

peaceful new neighbourhood.

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BERKELEY GROUP 2025 ANNUAL REPORT | 03

92%

of homes delivered during

the yearare on regenerated

brownfield land

Brownfield

67%

of homes had zero defects

reported by customers,

compared to just 6% across

the industry (HBF, March 2025)

Quality

4,047

homes delivered (plus 282 in

jointventures), including some

10% of London’s new private

and affordable homes

Homes delivered

long-term regeneration sites, of

which 26 are underconstruction

Regeneration

>1,200

acres of new or measurably

improved natural habitats

across 57 biodiversity net

gain sites to date

Regreening cities

£580m

of subsidies provided to

deliver affordable housing and

committed to wider community

and infrastructure benefit

Community benefit

Communities

+81.6

Net Promoter Score (NPS)

from our customers, compared

to an industry average of +59

(HBF, March 2025)

Customer satisfaction

8.7%

of our employees are

graduates, apprentices

or sponsored students

Skills training

27,000

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 29 to 31

1 Read more about our alternative performance

measures on pages 221 and 222 (Note 2.25)

Financial highlights

£529m

2024 | £557m

Profit before tax

14.9%

2024 | 16.2%

Pre-tax return on equity

£337m

2024 | £532m

Net cash

£35.95

2024 | £33.63

Net asset value per share

£1,403m

2024 | £1,701m

Cash due on

forward sales

£6,722m

2024 | £6,929m

Future gross margin

in land holdings

Highlights of the year

04 | BERKELEY GROUP 2025 ANNUAL REPORT

Accreditations

S&P Global Corporate

Sustainability Assessment 2024

Member of Dow Jones Best-

in-Class World Index and Dow

Jones Best-in-Class Europe Index,

Sustainability Yearbook

Member; Top 10% S&P Global CSA

Score and Industry Mover

Sustainalytics ESG Risk

Rating2025

Low risk rating and Industry

Top-Rated Company

FTSE4Good

Listed since 2003

ISS ESG Corporate Rating 2025

Prime status

Berkeley named ‘Britain’sMost

Admired Company2024’

MSCI ESG Rating 2024

AAA

LSE: Britain’s Most Admired Companies

We were proud to be named

Britain’s Most Admired Company

for 2024, topping therankings

among over 230 FTSE-listed firms

across 27 industry sectors.

The honour, unveiled at the London

Stock Exchange, reflects the results

of a detailed survey of corporate

reputation, as judged by leading

businesses, analysts, and industry

commentators. Alongside the

overall award, we were pleased to

be recognised for coming top in key

areas such as ‘Clarity of Strategy’,

‘Long-term Value Potential’, and

‘Reducing EnvironmentalImpact’.

Financial Times

Europe’s Climate Leaders 2025

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BERKELEY GROUP 2025 ANNUAL REPORT | 05

London

Bridge

Waterloo

St.Pancras

Paddington

City

Airport

Heathrow

Victoria

Berkeley is the only large

UK homebuilder to align

with the Government’s

brownfield-first

housingagenda.

We are taking forward

32 complex regeneration

projects. Each will deliver

over1,000 new homes,

alongside new investment

in public infrastructure,

amenities and the green

open spaces a strong

community needs.

In production

1 Alexandra Gate, Haringey

2 Beaufort Park, Hendon

3 Bermondsey Place, Southwark

4 Bow Green

5 Camden Goods Yard

6 Chelsea Creek

7 Grand Union, Brent

8 Green Park Village, Reading

9 Hartland Village, Fleet

10 Heron Wharf, Poplar

11 Horlicks Quarter, Slough

12 Kidbrooke Village, Greenwich

13 King’s Road Park, Fulham

14 Lombard Square, Plumstead

15 London Dock, Wapping

16 Oval Village

17 Prince of Wales Drive, Wandsworth

18 Royal Arsenal Riverside, Woolwich

19 Silkstream, Barnet

20 South Quay Plaza, Docklands

21 The Exchange, Watford

22 The Green Quarter, Ealing

23 TwelveTrees Park, Newham

24 West End Gate, Paddington

25 White City Living

26 Woodberry Down, FinsburyPark

Brownfield regeneration at scale

* Pipeline sites

Future sites

1 Aylesham Centre, Peckham*

2 Borough Triangle

3 Bromley-by-Bow

4 Queensmere, Slough

5 Sutton

6 Syon Lane, Brentford*

Our brownfield-first approach

will not only ramp up

housebuilding, but also

create more jobs, deliver

much needed infrastructure,

and boost economic growth

across the country.

Sir Keir Starmer | Prime Minister

06 | BERKELEY GROUP 2025 ANNUAL REPORT

Read more about

Grand Union on

pages 10 and 11

Key benefits

of urban

regeneration

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.

Challenges

Large scale urban regeneration sites

present challenges that few developers

can overcome:

— Building trust with communities and councils

— Complex planning and regulatory regimes

— Complex land assembly

— High up-front capital investment

— Site specific constraints

— Major infrastructure delivery

Solutions

Berkeley is the only developer in the country

with the skills, resources and operating model

to deliver urban regeneration at scale:

— In-depth community engagement

— Design-led approach and

placemakingexpertise

— Partnership working model

— Diverse in-house expertise

— Strong capital base and long-term

operating model

Before: Hornsey Gasworks

After: Alexandra Gate, Haringey

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BERKELEY GROUP 2025 ANNUAL REPORT | 07

EY completes an Economic Impact

Assessment each year based on

Berkeley’s financial data as well

aspublicly available statistics.

Driving growth and value

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.

On average, every new

home built by Berkeley

in the last five years has

generated £290,000 of

value to thestate through

taxation and contributions

tothecommunity.

EY 2025 Economic Impact Assessment

27,000

jobs

Berkeley has supported, on average, 27,000 UK jobs per

annum directly and indirectly through its supply chain

overthe last five years.

20,779

homes

Berkeley built 4,329 private and affordable homes in

2024/25 and a total of 20,779 over the last five years

(including joint ventures).

Economic value

EY’s independent Economic

Impact Assessment of Berkeley’s

activities highlights the following

keycontributions

£13.6bn

GDP

Berkeley’s contribution to UK GDP was £2.7 billion

in 2024/25 and £13.6 billion for the last five years.

£3.8bn

tax

Berkeley’s total tax contribution was £0.8 billion in 2024/25

and £3.8 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.

£2.3bn

community contribution

Berkeley made a community contribution of £0.6 billion

in 2024/25 and around £2.3 billion over the last five years.

This includes £1.8 billion in affordable housing subsidies

andadditional payments of £0.5 billion to fundlocal

facilitiesand services.

08 | BERKELEY GROUP 2025 ANNUAL REPORT

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BERKELEY GROUP 2025 ANNUAL REPORT | 09

Social value

1,440

apprenticeships

Berkeley has supported 1,440 apprenticeships in the last five

years, including 370 directly and 1,070 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 92% of homes delivered in

2024/25 on regenerated brownfield land.

>100,000

people engaged

Berkeley teams have engaged with over 100,000 people

in the last five years and reached 43,000 people in

2024/25 through a mix of community engagement

activities, site tours, school visits and careers fairs.

535

public amenities

Berkeley is delivering a range of public amenities 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 57 sites

with biodiversity net gain plans in place to date, helping to

regreen our towns and cities.

>60

embodied carbon

assessments

Berkeley has completed more than 60 embodied carbon

assessments over the last five years which are enabling

our teams to drive down future emissions.

14%

water saving

Berkeley incorporates water savingfeaturesin new homes

and developments. Over the last five years our homes

have been, on average, 14% more water efficient than

building regulations requirements.

18,000

electric vehicle

charging points

Berkeley incorporates electric vehicle charging points

into developments as part of wider sustainable

transport strategies. Across our live development sites,

more than 18,000 are planned to be installed.

Case study | Grand Union

Building good

green homes

where they are

needed most

In partnership with the

London Borough of

Brent, this previously

derelict industrial estate

is being transformed into

a welcoming new part of

Alperton, centred around

a beautiful canal-side

piazza and landscaped

open spaces.

A network of walking

and cycle routes

are connecting the

neighbourhood with its

surrounding community,

along with a riverside

meadow, shops, cafés,

restaurants, flexible office

space, health centre,

nursery and 5,000 square

foot community centre.

22-acre

brownfield site

3,350

private and affordablehomes

240%

biodiversity net gain

Grand Union Community Hub

SEGRO V-Park

Grand Union

Highly sustainable six-storey

industrial building providing

134,500 sqft of flexible

floorspace from just a 1.7-

acre footprint, delivered in

partnership with SEGRO.

10 | BERKELEY GROUP 2025 ANNUAL REPORT

The former industrial estate at Grand Union

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BERKELEY GROUP 2025 ANNUAL REPORT | 11

Read more about our investment case on page 17

Read more about our culture

and values on pages 108 and 109

Our values

Excellence through detail

Be passionate

Respect people

Think creatively

Have integrity

Our business model

Added-value development company

Berkeley is a unique asset-focused development business

that seeks to manage risk and generate long-term value

through market cycles, via its land and planning strategy

andgreat placemaking.

We seek to find the optimum development solution for each

site in terms of both the social, environmental and economic

value for all stakeholders, and the returns we deliver to

our shareholders. We firmly believe these two are mutually

compatible and reinforcing.

Berkeley’s inherent value is rooted in its land holdings and

the pace at which homes are delivered is determined by the

prevailing operating environment. Berkeley will always adopt

a long-term approach to value creation, prioritising financial

strength which brings optionality to capital allocation.

Our brands

100% owned:

Joint venture:

For more information

www.berkeleygroup.co.uk

Capital allocation policy

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 (new land and work-in-

progress, including Build to Rent assets) atthe right time.

Third,make returns to shareholders through dividends

andshare buy-backs.

Bow Green

12 | BERKELEY GROUP 2025 ANNUAL REPORT

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

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

Our Vision 2030

responsible business

strategy

— Drives our performance, fosters

innovation and maximises our

contributions to society, the economy

and the environment

— Strong focus on climate action, nature

recovery, strengthening communities

and future skills

— Focus on urban brownfield regeneration,

which is inherently sustainable, socially

inclusive and supports a lower carbon

model for modern living

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BERKELEY GROUP 2025 ANNUAL REPORT | 13

In a year marked by continued

economic and regulatory

uncertainty, we have remained

focused and disciplined. Our

delivery teams have maintained

build quality and controlled costs,

and we have adapted to the current

market conditions.

We met our shareholder returns

target for the twelve months to

30September 2024, with dividends

paid in the 2025 financial year of

£68.0 million, a special dividend of

£183.8 million and share buy-backs

totalling £129.7 million. In respect of

the annual £284 million due to be

returned by 30 September 2025,

there is a further £121.0 million

remaining which will be returned

either through share buy-backs

ordividends.

Progress against Strategy

In December, we set out a new

10-year strategy with an agile

capital allocation framework, to

enable the Company to create

long-term value for shareholders

while taking account of the volatility

that persists in the operating

environment. We are pleased with

the progress made to date, as set

out in this report, including the

initial steps to establish our Build to

Rent platform.

We continue our primary

commitment to brownfield

urban regeneration. Recognised

as the most sustainable form

of development, providing the

strongest economic, environmental

and social outcomes, it is the most

complex and our long experience in

this area puts us in a uniqueposition.

Our Vision 2030, Berkeley’s

responsible business strategy,

continues to guide our operations,

ensuring that we remain at

the forefront of the industry in

important areas such as skills and

training, customer service, carbon

reduction, biodiversity net gain

andcommunity engagement.

This focus is important in building

trust with the communities we

serve, the partners with whom we

work, and the policymakers who

shape our operating environment.

We continue to play a proactive

role in working with all levels of

Government to help influence

policy around providing deliverable

solutions to the housing challenges

facing the country.

Board Changes

I will step down from the Board

at the conclusion of the Annual

General Meeting in September.

William Jackson will also leave the

Board at that time. I would like

to thank William for his valuable

contribution to the Board.

It is proposed that Rob Perrins will

be appointed Executive Chair at the

conclusion of the Annual General

Meeting and Richard Stearn Chief

Executive. Rachel Downey, the

Senior Independent Director, will

consult with major shareholders

onthese appointments.

Richard Dakin, with a career in

banking, capital markets and real

estate at Lloyds Bank and CBRE,

will join the Board as a Non-

Executive Director at the conclusion

of the Annual General Meeting.

Looking Ahead

As we enter the first year of the

Berkeley 2035 strategy, we do so

from a position of strength. The

macroeconomic and regulatory

environment remains challenging,

but our distinctive approach,

experienced leadership team,

and proven track record provide

resilience and opportunity.

Berkeley has a proud and distinct

heritage and a great deal of potential.

It is an honour to have played a role.

Rob has been a great Chief Executive

for 16 years and I wish him and the

Company all the best for the future.

Michael Dobson | Chairman

20 June 2025

Chairman’s Statement

Berkeley delivered strong operational and

financial performance in the year ended

30April 2025. Pre-tax profit of £528.9 million

was in line with guidance, we have a robust

net cash position and we are on target to

complete thescheduled shareholder returns.

The external environment remains challenging,

with demand down by approximately 30%,

but the Company’s performance reflects

the strength of our business model and the

expertise and commitment of our people.

Michael Dobson | Chairman

14 | BERKELEY GROUP 2025 ANNUAL REPORT

Woodberry Down, Finsbury Park

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BERKELEY GROUP 2025 ANNUAL REPORT | 15

Berkeley is fully committed to the

Government’s housing-led growth

agenda, and we are submitting

planning applications on all our sites

to accelerate delivery. We continue

to work with all levels of Government

to ensure planning consents are

appropriately viable following a

number of years of extreme cost

inflation and regulatory change and

can move into production.

We welcome the Government’s

efforts to unblock housing supply

and advocate focused action

to accelerate the completion

of Section 106 agreements and

clearance of pre-commencement

conditions; improve and speed-up

the Building Safety Regulator’s new

Gateway approval system; increase

funding for the Affordable Housing

sector; and ensure Planning

Authorities have the resources and

pro-active mind-set to facilitate

housing delivery.

We were therefore delighted to

see the increase in Affordable

Housing funding and the 10-year

social housing rent settlement

announced in last week’s Spending

Review, which represent positive

progress towards achieving their

housingambitions.

Regenerating brownfield land

remains central to Government

policy with an estimated 88,000

homes required to deliver the

national annual housing target

to come from London. With our

focus on London, Birmingham and

the South-East, Berkeley is the

only large UK homebuilder with

a business model that prioritises

brownfield development and is

unique in having the expertise and

resources to unlock complex urban

sites and their significant economic

and social value.

92% of the 4,300 homes delivered

in the year are on regenerated

brownfield land and we have

provided some £580 million in

subsidies to deliver affordable

housing and commitments

to wider community and

infrastructurebenefits.

Berkeley has delivered £528.9

million of pre-tax profit for the year,

with net cash at £337.3 million, in

spite of ongoing geopolitical and

macroeconomic volatility. With

over 75% of sales secured for the

coming year, we are well-placed

to achieve our FY26 pre-tax profit

guidance of £450 million.

This represents an excellent

operational performance with highly

disciplined execution and close

control of costs. We have added

long-term value to the business,

both in our land holdings and

through our Build to Rent (BTR)

platform, while returning £381.5

million to shareholders; a great start

to the Berkeley 2035 strategy.

There is good underlying demand

for our homes, with transaction

volumes gradually improving over

the course of the year. However,

consumer confidence remains

finely balanced and a more

meaningful recovery requires

both improved sentiment and

macroeconomicstability.

Exceptional execution to deliver strong operational

and financial performance in volatile operating

environment and on track for FY26

Very supportive Government policy but regulatory

headwinds remain

92% of homes delivered by Berkeley in FY25 were on

brownfield land with some £580 million investment

insocio-economic benefits

Great start to Berkeley 2035 strategy, with first

4 buildings transferred to the BTR platform and

good progress on planning, creating long-term

shareholdervalue

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.

Rob Perrins | Chief Executive

Chief Executive’s Review

16 | BERKELEY GROUP 2025 ANNUAL REPORT

Long-term Shareholder

Returns

342% TSR

(Total Shareholder Return)

since 1 January 2007

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:

Royal Arsenal Riverside, Woolwich

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 £337 million, with

£1,200 million of debt facilities

— Cash due on private forward sales

under exchanged contracts of

£1.4billion

— Land holdings estimated future

gross margin of £6.7 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

To capitalise fully on the

opportunity presented by large-

scale brownfield regeneration,

we advocate the use of bespoke

Section 106 agreements instead

of the Community Infrastructure

Levy (CIL), which would reflect the

significant on-site infrastructure and

amenities they provide and allow

for an increase in delivery of much

needed affordable housing.

We are delighted to have added a

large site in Slough town centre to

our portfolio in the year and also to

have been selected as development

partner by Birmingham City Council

for the regeneration of the 148-

acre Ladywood Estate, with the

potential to deliver over 7,500

new and refurbished homes. Both

are hugely exciting opportunities

to drive growth in our towns and

cities in partnership with energised

and forward-thinking public

sectorpartners.

Under our new Berkeley 2035

strategy announced in December,

which is fully aligned to the

Government’s increased housing

delivery ambitions, Berkeley can

allocate £5 billion of capital to new

investment over the 10-year period,

including delivering 4,000 homes

for rent through our own Build to

Rent (BTR) platform.

We have adapted our business to

current market conditions over the

last 18 months, which results in the

pre-tax profit guidance for FY26 of

£450 million, with FY27 likely to be

similar, based on current sales rates.

Our long-term target is to make a

pre-tax return on equity above 15%

over the cycle but will be below

this in the medium-term while the

current operating environment

volatility persists, and we invest in

our BTR platform to increase future

delivery and maximise long-term

value for shareholders.

Berkeley’s performance is a result of

the skill, passion and commitment

of our people. They continue to

deliver hugely positive outcomes

for communities, the economy and

environment through ambitious

brownfield regeneration and I thank

them for this on behalf of the Board

and shareholders.

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 17

Berkeley 2035 – a strategy for value creation over the next 10 years

The Government’s aspiration to

deliver 1.5 million homes over this

current Parliament has been a

catalyst to unlocking the planning

system. Berkeley is well aligned

to Government’s ambition with its

brownfield land holdings and pipeline

in well-connected urban areas.

In December 2024, Berkeley

announced a 10-year strategy to

drive long-term shareholder value

by using its operating expertise and

balance sheet strength to capitalise

on investment opportunities as

they arise while taking account of

the volatility that persists in the

operating environment.

Berkeley 2035 is underpinned

by anagile capital allocation

framework through which it can

utilise its entrepreneurial property

expertise to invest in opportunities

in the near-term that maximise

long-term shareholder value.

Berkeley 2035 comprises three

principle value drivers:

1. Increase return on capital in

the core business

— Land holdings – optimising the

value of existing sites through

re-planning activity, alongside

the delivery of high quality

placemaking and customer service

— Pipeline sites – securing the

inherent value within our pipeline

sites through obtaining planning

consent and bringing them

forward intodelivery

— Land investment – selective

investment in new sites where

Berkeley can use its added-value

development expertise to create

great places and homes, and

value for shareholders

2. Establishing a market-

leading Build to Rent

platform and significantly

growing its value

— Accelerating delivery on our

large brownfield sites to meet the

strong unsatisfied demand for

quality residential rental property

built in andaround London, the

UK’s most under-supplied market

— Creating a permanent route to

market with income generating

assets attractive to institutional

core capital, to capture the

fundamental BTR value drivers

of rental growth and stabilised

investment yields

— A platform provides multiple

and flexible exit routes

post stabilisation of the

assets,including:

— Disposal of individual

BTR buildings or a series

ofportfolios;

— Introducing third-party

equity with Berkeley retaining

management under a fee

arrangement; or

— Introducing debt, with

allocation to the BTR assets.

— Maximises the opportunity to

capture superior returns through a

best-in-class platform and service.

3. Making returns to

shareholders through share

buy-backs or dividends;

a strategy that will grow

the long-term value of

Berkeley, while retaining

financial strength

— Targeting a minimum level of

shareholder returns of £2.0

billionover the next ten years

— Of which, £0.9 billion will be

returned by 30 September

2030 (which includes the final

£260 million to be returned

under the 2011 programme of

which £139 million was already

paid and the remaining

£121million is due by

30September 2025); and

— The remaining £1.1 billion

willbe returned by

30September 2034

— Returns after September 2025

will be phased and delivered

through a combination of share

buy-backs and dividends,

with the actual level of returns

dependent upon the extent

to which the £1.3 billion of

flexibly allocated free cash flow

is deployed into investment

opportunities or returned

toshareholders.

Flexible Capital Allocation Framework

Berkeley has identified £7 billion of free cash flow to deploy over the

next 10 years to drive value. This is before introducing any external

funding to the BTR platform and anticipates an initial allocation of:

Land investment to replace land holdings used over 10 years £2.5 billion

Existing BTR commitment for initial 4,000 home portfolio £1.2 billion

Minimum level of shareholder returns committed £2.0 billion

Flexible allocation to be invested or returned to shareholders £1.3 billion

Free cash flow to be deployed over 10 years to 2035 £7.0 billion

This agile framework combines the necessary near-term resilience

with the ability to flex a greater allocation to new land, the BTR

platform or shareholder returns as the operating environment evolves.

Chief Executive’s Review continued

18 | BERKELEY GROUP 2025 ANNUAL REPORT

The Green Quarter, Ealing

Adopting this flexible capital

allocation strategy at this point

in the cycle enables Berkeley

to retain financial strength at a

time of persistent volatility in the

operating environment so that it

can maximise value from its assets

and make returns to shareholders

over the next 10 years.

Over the next 10 years Berkeley is therefore

targetingto:

— Maintain operating margins in the historic

range of 17.5%to 19.5%

— Maximise the value of our land holdings and

pipeline sites

— Grow the value of its BTR platform and realise

best value for these income producing assets

— Grow net asset value per share during the

investment phase of the 10-year period

The Green Quarter, Ealing

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 19

Chief Executive’s Review continued

Construction activity at Oval Village

For more detail see

pages 34 to 55

We continue to take

action on our ambitious

long-term responsible

business strategy, Our

Vision2030, helping to

drive our performance,

spur innovation and

maximise our positive

impacts on society,

the economy and

thenatural world.

Rob Perrins | Chief Executive

Our Vision 2030

Responsible

BusinessStrategy

20 | BERKELEY GROUP 2025 ANNUAL REPORT

Sales

The value of underlying net sale

reservations for the year was 5%

ahead of FY24, weighted slightly

to the second half reflecting the

improved momentum we noted

in December’s interim results and

March’s Trading Update. While this

is encouraging, current sales levels

are below our long-term aspirations

and around 30% lower than FY23.

While transaction sales volumes

will only inflect in a meaningful

way once there is confidence in the

trajectory of interest rate reductions

and wider economic stability,

Berkeley’s unique and beautiful

developments with access to

nature and well connected to public

transport, alongside outstanding

customer service, continue to

differentiate our product and

generate good enquiry levels.

This underlying demand has

underpinned the launch of three

new developments in London

during the year: Wandsworth Mills,

Bermondsey Place in Southwark

and Trillium in Marylebone and the

next phases of a number of our

established developments, including

White City Living, London Dock

and TwelveTrees Park, amongst

others. These have all generated

good levels of forward sales, with

customers who are able to commit

funds recognising that this is a

good time to buy. In these market

conditions, demand levels do vary

between sites, depending upon

their individual characteristics,

and this is also reflected in pricing.

Overall, sales prices secured across

our portfolio have been slightly

ahead of business plan pricing

at the start of the financial year.

Forward sales are £1,403 million

(30 April 2024: £1,701 million) and

will moderate further over the

next 12 months under prevailing

marketconditions.

Our outlook for the sales market

is positive. The fundamentals are

strong and improving with good

employment, real wage inflation,

falling mortgage rates and strong

rental market dynamics. There is

deep-rooted undersupply of new

homes in Berkeley’s core markets.

Focusing on London, which remains

a fantastic global city, the latest

quarterly MHCLG data is stark with

just over 6,300 new-build starts over

the last 12 months to 31 December

2024, a year-on-year decline of

some 60%. London’s housing

need is now estimated at 88,000

homes per year based on the NPPF

assessment, while the current

London Plan (which remains in place

until 2026) has an annual housing

delivery target of 52,000 homes.

Construction

For Berkeley, build costs have

remained stable over the

course of the year. The sluggish

domestic economic backdrop,

with low housebuilding and

wider construction activity, is

leading subcontractors to absorb

underlying inflationary pressure on

materials and labour within their

tender pricing. As we look forward,

Berkeley expects this dynamic to

continue as subcontractors place

value on securing the forward

orders in a weak market.

We remain alive to inflation

risk, conscious of the recent

increase in Employers’ National

Insurance Contributions, but

more prominently from ongoing

regulatory change, including the

transition to a new regulatory

regime. In respect of the latter,

we continue to work with both

the MHCLG and the Building

Safety Regulator (BSR) to resolve

the ongoing process issues

encountered at Gateway 2 which,

if left unresolved, would lower

industry-wide delivery over the

medium-term.

CMA investigation

In February 2024, the Competition

and Markets Authority (CMA)

announced an investigation into

possible anti-competitive sharing

of information in the housebuilding

industry. We continue to cooperate

with the CMA and its enquiries.

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 820 relevant buildings

Berkeley has developed over

this period, we have third party

assessments on over 95%. All of

the remaining buildings are where

Berkeley is not the freeholder and

has not yet been provided access.

There are 36 buildings where works

are still to be completed, 12 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

any 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.

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.

Housing Market and Operations

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 21

Chief Executive’s Review continued

The plots in the land holdings have

an estimated future gross profit of

£6.72 billion (30 April 2024: £6.93

billion), which includes the Group’s

50% share of the anticipated

profit on St Edward’s joint

venturedevelopments.

Through the three new sites,

planning activity (including transfers

with the pipeline) and market

movements, Berkeley has replaced

£0.5 billion of the £0.7 billion of

gross profit taken through the

Income Statement in the year. The

estimated future gross margin in the

holdings at the end of the year was

24.7% (30 April 2024: 25.1%).

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, including current sales

and input prices; the political and

economic backdrop; the planning

regime; and other market forces; all

of which could have a significant

effect on the eventual outcome.

In the year, Berkeley has provided

some £580 million in subsidies

to deliver affordable housing and

commitments to wider community

and infrastructure benefits through

Section 106 agreements. At over

150% of post-tax profit, this rate has

doubled over the last 10 years.

As at

30 April

2025 Change

30 April

2024

Owned 52,714 -886 53,600

Contracted – -481 481

Plots 52,714 -1,367 54,081

Sales value £27.2bn -£0.4bn £27.6bn

Average selling price* £522k +£6k £516k

Average plot price* £48k -£1k £49k

Land cost % 9.2% -0.2% 9.4%

Gross margin £6,722m -£207m £6,929m

Gross margin % 24.7% -0.4% 25.1%

* Reflects joint venture sites at 100%

Land and planning

Berkeley has acquired three new

sites in the year. These include:

a strategic site at Maidenhead in

Berkshire for 220 homes, following

the grant of a planning consent; a

brownfield site in Hersham, Surrey,

for which a resolution to grant

planning has been received since

the year end for 260 homes; and

the Queensmere and Observatory

Shopping Centres in Slough, which

have the potential to deliver over

2,000 homes.

We have made good progress on

the planning front, securing five

new planning consents at Bromley-

by-Bow (2,150 homes), Leyton

(640 homes) and Stratford (245

homes) in London and Bath (611

homes) and the new Maidenhead

site outside London. In addition,

there have been over 30 other

planning amendments agreed

in the year, including additional

homes at TwelveTrees Park in West

Ham, London Dock in Wapping,

Heron Wharf in Poplar, and Horlicks

Quarter in Slough.

At 30 April 2025, Berkeley’s land

holdings comprise 52,714 plots

across 64 developments (30

April 2024: 54,081 plots across

70developments), including those

in the St Edward joint venture.

Over the same period new starts

across the industry in London have

more than halved.

The pipeline comprises approximately

12,000 plots at 30 April 2025,

following the transfer in the year of

the site at Bromley-by-Bow to the

land holdings on achieving planning

consent net of other movements.

The pipeline includes the first phase

of the St William site at Beckton

(2,800 homes) and the St Edward

site in Brentford (2,100 homes),

pending finalisation of its Section

106agreement.

Housing Market and Operations continued

22 | BERKELEY GROUP 2025 ANNUAL REPORT

Build to Rent (‘BTR’) Platform

Berkeley has made significant strides toward establishing a market-leading

BTR platform during this period.

The first four buildings have been transferred to the BTR platform as at 30

April 2025. Comprising 762 homes, this is nearly 20% of the initial 4,000

home portfolio. The next two buildings (at Grand Union and Silkstream)

have been transferred since the financial year end:

Sites in the BTR Platform (30 April 2025) Location

Initial BTR

Homes

Total BTR

Homes

- Alexandra Gate, Haringey Zone 3 187 402

- Kidbrooke Village, Greenwich Zone 3 90 206

- Eden Grove, Staines Surrey 158 158

- Horlicks Quarter, Slough Berkshire 327 327

In the BTR platform 762

- Grand Union, Wembley Zone 3 177 326

- Silkstream, Hendon Zone 3 183 183

Total homes in production 1,122

- BTR future production 2,878

- Other sites – 2,398

Initial BTR portfolio 4,000 4,000

A management team is in place,

led by senior Berkeley employees

augmented through external

hires from the BTR industry with

operational, customer service and

digital experience. Six planning

consents have been obtained to

revise the amenity provision or

optimise the unit mix for a rental

market in the relevant buildings. An

appropriate specification has been

determined and Berkeley is well

advanced in establishing a distinct

BTR brand identity targeting

a rental market that leverages

the existing brand credentials.

Berkeley will be launching its first

development to the rental market in

spring 2026 (Alexandra Gate).

The initial BTR portfolio homes are

included in the land holdings plots

and future estimated gross profit.

Sunningdale Park

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 23

Chief Executive’s Review continued

Kidbrooke Village, Greenwich

Shareholder Returns

Shareholder returns during the financial year totalled £381.5 million:

Shareholder Returns for the year ended 30 April

2025

£’m

2024

£’m

Dividends paid 68.0 98.1

Special dividend paid 183.8 –

Share buy-backs undertaken 129.7 72.3

Shareholder return in the financial year 381.5 170.4

Dividends paid in the year of £68.0 million comprised a £35.0 million

payment in July 2024 (33 pence per share) and a £33.0 million payment

inMarch 2025 (33 pence per share).

The special dividend in the year of £183.8 million (174 pence per share)

was followed by a share consolidation which reduced the Company’s share

capital, net of Treasury and EBT shares, by 3.7 million shares (3.5%).

The share buy-backs of £129.7 million were in respect of 3.3 million shares

(average price: £39.05 per share).

Under Berkeley 2035 there is £121 million due to be returned by 30

September 2025 which may be made through share buy-backs and a

dividend in September to the extent there is a residual amount following

any share buy-backs (which completes the annual return of £284 million

by 30 September 2025 under the 2011 Programme). Thereafter, the next

shareholder return hurdle is a further £640 million over the five year period

to 30 September 2030.

Outlook

Berkeley is determined to play a full part in helping Government meet

its growth ambitions and has been greatly encouraged by the tone set

by the brownfield-led housing agenda. Converting this into delivery

is challenging particularly as it comes after a period of extreme cost

inflation and complex regulatory change. However, the challenges

must not dampen the ambition as the prize is significant in the form

of economic growth, revitalised towns and cities and better prospects

for young people.

We have a clear plan for the next 10 years and are ready to invest

£5billion of capital into new sites and our new BTR platform, which

will deliver at least 4,000 additional homes over this period.

We are positive about the future, with strong fundamentals

supporting both the for sale and rental elements of our business

including structural under-supply and the prospect of falling interest

rates and a supportive lending market. Central to this is the UK and

London’s position in the global economy and the ability to attract the

investment required by both the public and private sectors to meet

the nation’s housing need.

As always, we are positioning Berkeley for the long-term and embark

upon the new financial year in a strong financial position with net cash

of £0.3 billion, £1.4 billion of cash due on exchanged private forward

sales and £6.7 billion of future gross margin in our land holdings.

24 | BERKELEY GROUP 2025 ANNUAL REPORT

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 25

5,000

40,000

10,000

15,000

20,000

35,000

30,000

25,000

45,000

50,000

55,000

60,000

London Starts (rolling 12 months)

England Starts (rolling 12 months)

–

200,000

100,000

75,000

125,000

50,000

25,000

150,000

175,000

225,000

250,000

275,000

300,000

-64%

-88%

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

England Starts

England Target

London Starts

London Plan Target

Pandemic

recovery

Market overview

Figure 2 – Regional housing supply

Figure 3 – Transaction volumes

–

The housing market is

sensitive to underlying

sentiment and the

prevailing geopolitical

and macro-economic

environment. It is

therefore cyclical in

nature, and Berkeley

is experienced at

operating in this

environment, with

a unique long-term

business model that

enables us to deliver

homes and outcomes

for all stakeholders

through market cycles.

The global economy continues

to be characterised by

heightened volatility and

uncertainty, with trade policies

emanating from the US

introducing a new source of

global uncertainty.

Against this global background,

the UK also faces its own

domestic headwinds, which add

to a complex and challenging

operating environment for the

housebuilding sector specifically.

Inflation was 3.5% in the year to

April 2025, higher than 2.6% a

year prior, but materially lower

than the double-digit levels in

2022. Towards the end of the

year, it is expected to reduce

again, before moderating to

theBank of England’s 2% target

by the end of 2026. Whilst

build costs are now relatively

stable and competitive,

inflationremains a risk in the

current environment.

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

200,000

100,000

50,000

150,000

1,250,000

250,000

1,000,000

500,000

750,000

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

Mini Budget

3% SDLT levy

imposed

England (excl. London)

London

East of

England

East

Midlands

London

North

East

North West

South

East

South

West

Midlands

Yorkshire

and the

Humber

Homes

England Transactions (rolling 12 months)

London Transactions (rolling 12 months)

Pandemic

recovery

2022/23

2023/24

2024/25 (EPC data)

Assessed Housing Need

Berkeley’s core markets

Figure 1 – Construction starts activity

26 | BERKELEY GROUP 2025 ANNUAL REPORT

Inflation and higher mortgage

rates continue to impact market

sentiment. However, with inflation

easing and the Bank of England

expected to continue measured

rate reductions towards a market-

implied rate of 3.6% by the end

of 2025, sentiment should

improve, with supportive mortgage

availability and rates amongst

competitive lenders.

The sector is often considered a

bellwether for the health of the

wider economy. It is encouraging

that the new Government is

focusing upon reforming the

planning system, identified as one of

the key barriers to housing delivery

that has exacerbated the historical

structural undersupply of housing.

The Government has pledged to

deliver 1.5 million homes over this

Parliament. At 300,000 homes

a year, this is a level consistent

with the previous Government

target, but one that has not been

achieved since the 1960s, when

the Government directly delivered

around 40% of all new build homes.

The National Planning Policy

Framework (NPPF) was revised at

the end of last year and contains

several measures to create a

favourable planning environment,

including the re-introduction of

mandatory local housing targets

and ensuring local authorities can

demonstrate a five-year land supply,

with a presumption for planning

decisions in favour of sustainable

development. An increase in local

planning department funding should

also alleviate capacity restrictions.

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 recent build cost inflation and

supply chain strength, affordability

constraints and a reduced demand

from affordable housing providers

due to their funding constraints.

The sector also needs to integrate

and comply with a number of

emerging regulatory regimes,

including the Building Safety Act

2022, the Building Safety Regulator,

the Future Homes Standard, the

Environmental Act 2021, biodiversity

net gain and other environmental

requirements. The introduction of

the Building Safety Levy places

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

important part of the market and

2024 saw a record level of capital

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.

However, the long-term

fundamentals of the housing

sector and Berkeley’s core markets

in London and the South East

remainstrong:

— London’s position as a global city

remains compelling;

— systemic and compounding

under supply in London and the

South East of England continues;

— unemployment remains at

low levels, despite economic

uncertainty, with strong

wagegrowth;

— interest rates are reducing from

the recent peak and future

expectations are supportive

of restoring sentiment

andaffordability;

— a competitive lender market

supports good mortgage

availability; and

— strong growth in the rental

market means both home

ownership is a viable preference

despite higher interest rates, and

investors can achieve appropriate

yields, supporting the important

rental market.

London and the South East is

systemically under-supplied

The revised NPPF identified a

national housing need of 370,000

homes a year, which is higher than

the Government’s committed target

of 300,000 homes. Given current

delivery levels, sector activity will

require a significant scaling up.

During 2024/25, the number of

new homes completed across

England was around 205,000,

the lowest level since 2015/16.

This is around two thirds of

the Government’s ambition.

Future completions look set to

remain materially below targets,

based upon current permissions

and starts activity, further

compounding the supply issue.

There were 108,000 starts reported

in England in 2024, which is lower

than the pandemic impacted

period and the lowest level since

the start of 2013 (see Figure 1).

This is a little over a third of the

Government’scommitment.

The number of homes that

gained planning permission in

2024 nationally was the lowest

in a decade. Whilst most regions

declined, London was one of the

most significant, reducing by 14%,

having fallen by over a quarter in

the prior year to the lowest levels

since 2011.

Based upon the NPPF assessment

of housing need, the under supply

on a regional basis continues to be

concentrated in London and the

South East (see Figure 2).

London’s housing need is now

estimated at 88,000 homes per

year, which compares to the

previous identified need of nearly

100,000. The current London Plan

(which remains in place until 2026)

has an annual housing delivery

target of 52,000 homes. Even if this

current target were reached, this

would still represent a shortfall of

36,000 homes or around 41% every

year relative to the NPPF’s latest

assessment of need.

In 2023/24, there were 32,000

homes delivered in London, of

which 28,000 were new build.

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 27

Market overview continued

Thedelivery in 2024/25 is

expected to be broadly similar,

a 64% shortfall compared to the

latest identified need, with the

requirement for upcoming London

Plan revisions to be consistent with

the new NPPF.

This supply constraint in London

looks set to continue in the medium

to long-term, with new build starts

of just over 6,300 in the last year

(see Figure 1), a year-on-year

decline of just over 60%. This

reduction in activity over the last

year 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 38,500 per

year over the last three years. 

This is an annual shortfall of 32,500

homes (46%), the second highest

regional shortfall behind London.

Transaction volumes

Transaction volumes over the last

year have settled around 30% lower

than prior to September 2022, at

levels comparable to the height of

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

gradual improvement of interest

rates should help stimulate activity.

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 showed the

adverse impact of increased

transactional taxation upon demand,

which initiated a contraction of

activity, exacerbated in London (see

Figure 3). Current volumes are now

35% and 43% lower nationally and

in London respectively than prior to

this policy change.

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 the conditions

forgrowth

Berkeley strongly supports the

Government’s ambition to increase

housing delivery in a sustainable

manner and introduce supportive

measures. Initial reforms to the

planning and regulatory system

are setting a clear objective of

delivering more homes in the places

where they are most needed.

When individual homebuyers,

investors, and developers like

Berkeley have the confidence and

ability to invest for the long-term,

this supports significant economic

activity, improves social mobility,

and permanently increases the

country’s asset base. Berkeley

believes that the following further

actions could help support

sustainable housing delivery and

economic growth:

— Optimise brownfield urban

regeneration by removing tariff

layering on strategic brownfield

sites and refocus on bespoke

section 106 agreements to deliver

on the priorities of local people,

whilst delivering more homes

and generating more taxrevenue

in the medium to long-term.

— Embrace urban density on

brownfield land in our most

productive towns and cities,

particularly where those homes

are able to utilise and leverage

existing infrastructure.

— Resolve the operational

challenges of the Building

Safety Regulator to ensure it

can fulfil its primary objective

and support the sector to

deliver on the Government’s

manifestocollectively.

— Appropriately fund housing

associations and new affordable

housing, assisting with the

private sector’s efforts to

replicate historical record

delivery levels achieved in

tandem with significant

Government involvement.

— Increase market liquidity through

reduced transaction taxes and

encourage a supportive lending

environment, enabling those who

can afford to buy homes in the

open market to be able to do so.

Sources:

(1) Office for National Statistics

(2) Bank of England

(3) MHCLG Live Table 244

(4) Savills

(5) MHCLG EPC data

(6) MHCLG Live Table 118

(7) MHCLG Live Table 213

(8) HBF

(9) House of Commons Library Debate

Pack, May 2025

(10) MHCLG Live Table 217

(11) Land Registry

King’s Road Park, Fulham

28 | BERKELEY GROUP 2025 ANNUAL REPORT

Trading and Financial Review

Revenue of £2,486.5 million in

the year (2024: £2,464.3 million)

included £2,432.2 million of

residential revenue (2024: £2,395.7

million), £14.8 million of commercial

revenue (2024: £47.2 million) and

£39.5 million of land sales (2024:

£21.4 million).

4,047 new homes (2024: 3,521)

were sold across London and

the South-East at an average

selling price of £593,000 (2024:

£664,000) reflecting the mix of

properties sold in the year.

The gross margin percentage is

26.6% (2024: 26.2%), reflecting

the mix of developments on which

homes were completed in the year.

Overheads of £160.3 million have

decreased £4.5 million (2024:

£164.8 million). The operating

margin is 20.1% (2024: 19.5%).

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 £14.2 million for

the year (2024: £12.0 million).

Taxation

The Group has an overall tax

charge of £146.9 million for

the year (2024: £159.7 million)

and an effective tax rate of

27.8% (2024: 28.7%). 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 2025)

Corporate Tax £120.3m

SDLT £7.3m

PAYE £65.0m

Employees’ NI £8.6m

Employer’s NI £27.8m

For the year ended 30 April 2025, the

total tax contribution to the UK Treasury

was £229.0 million; split between taxes

borne by Berkeley of £155.4 million

(corporation tax, employer’s NIC and

SDLT) and taxes borne by our employees

of £73.6 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 08.

Berkeley’s share of the results of

joint ventures is a profit of £14.7

million (2024: £65.6 million), with

St Edward’s profits arising from its

South-East developments following

delivery of its central London

developments in the prior year.

The taxation charge for the year is

£146.9 million (2024: £159.7 million)

at an effective tax rate of 27.8%

(2024: 28.7%), which incorporates

the additional 4% RPDT and

Corporation Tax of 25%.

Pre-tax return on equity for the year

is 14.9% (2024: 16.2%) and return

on capital employed for the year is

16.5% (2024: 18.3%).

Basic earnings per share has

decreased by 0.6% from 373.9

pence to 371.8 pence, which takes

account of the share consolidation

which accompanied the special

dividend during the year and the

buy-back of 3.3 million shares for

£129.7 million under the Shareholder

Returns Programme.

Trading performance

Year ended 30 April

2025

£m

2024

£m

Change

£m %

Revenue 2,486.5 2,464.3 +22.2 +0.9 %

Gross profit 660.3 644.5 +15.8 +2.5%

Operating expenses (160.3) (164.8) +4.5 -2.7%

Operating profit 500.0 479.7 +20.3 +4.2%

Net finance costs 14.2 12.0 +2.2

Share of joint ventures 14.7 65.6 -50.9

Profit before tax 528.9 557.3 -28.4 -5.1%

Pre-tax return on equity 14.9% 16.2% -1.3%

Earnings per share – basic 371.8p 373.9p -2.1p -0.6%

£229.0m

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 29

Trading and Financial Review continued

Financial Position

The Group’s net assets are £3,560

million (2024: £3,561 million).

Investment Properties

Investment properties totalled

£145.7 million as at 30 April 2025,

measured on a cost basis, in relation

to assets under development which

have been transferred to the Group’s

BTR platform during the year.

Inventories

Inventories of £5,052.2 million

include £554.3 million of land not

under development (2024: £725.8

million), £4,160.1 million of work in

progress (2024: £4,347.7 million)

and £337.8 million of completed

stock (2024: £210.4 million).

During the year, five developments

(Milton Keynes, Wandsworth

Mills, Spring Hill in Maidenhead,

Hurlingham in Fulham and

Trillium in Marylebone) have

been moved from land not under

development into work in progress.

Thecompleted stock is spread

across 25developments.

Creditors

Total creditors of £2,455.1 million

include £711.5 million of on-account

contract receipts from customers

(2024: £907.7 million) and land

creditors of £714.0 million (2024:

£881.7 million). Of the total £714.0

million land creditor balance, £251.2

million is classified as short-term

given the expected settlement

within 12 months of the balance

sheet date.

Creditors also include provisions

of £229.6 million (2024: £209.8

million) which represents post

completion development

obligations, including those related

to building fire-safety matters, and

other provisions.

Summarised Balance Sheet as at 30 April

2025

£m

2024

£m

Change

£m

Non-current assets 379.3 393.4 -14.1

Investment properties 145.7 – +145.7

Inventories 5,052.2 5,283.9 -231.7

Debtors 100.4 127.0 -26.6

Creditors (2,455.1) (2,775.8) +320.7

Capital employed 3,222.5 3,028.5 +194.0

Net cash 337.3 532.0 -194.7

Net assets 3,559.8 3,560.5 -0.7

Shares, net of treasury and EBT 99.0m 105.9m -6.9m

Net asset value per share 3,595p 3,363p +232p

Abridged Cash Flow for year ended 30 April

2025

£m

2024

£m

Profit before taxation 528.9 557.3

Taxation paid (120.5) (170.5)

Net investment in working capital (215.5) (105.9)

Net investment in joint ventures (15.8) (3.7)

Other movements 9.7 14.8

Shareholder returns (381.5) (170.4)

(Decrease) / increase in net cash (194.7) 121.6

Opening net cash 532.0 410.4

Closing net cash 337.3 532.0

Hareshill, Fleet

30 | BERKELEY GROUP 2025 ANNUAL REPORT

Net cash

The Group ended the year

with net cash of £337.3 million

(2024:£532.0 million), a decrease

of £194.7million.

The net cash of £337.3 million

comprises gross cash holdings

of £1,015.2 million and long-term

borrowings of £677.9 million.

Long-term borrowings have

increased by £17.9 million in the year

following a drawdown of the Homes

England borrowing facility.

Net assets and NAVPS

Net assets decreased over the

year by £0.7 million to £3,559.8

million (2024: £3,560.5 million) as

shareholder returns of £381.5 million

and other movements in reserves of

£1.2 million offset the profit after tax

for the year of £382.0 million.

The shares in issue, net of treasury

and EBT shares, closed at 99.0

million compared to 105.9 million

at the start of the year. The net

reduction of 6.9 million shares

comprises three movements

(subject to rounding):

— The 3.3 million share buy-backs

undertaken during the year for

£129.7 million (£39.05 per share);

— The issue of 0.2 million shares

under the 2011 LTIP; and

— A reduction of 3.7 million

shares resulting from the

shareconsolidation.

Consequently, the net asset value

per share is 3,595 pence at 30 April

2025, up 6.9% from 3,363 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).

Berkeley has a facility with Homes

England whereby it may apply

amounts borrowed towards

financing or re-financing certain

infrastructure type costs incurred

on three of its developments.

The facility totals £125.6 million,

is unsecured, has floating interest

rates linked to UK base rate and

requires 33.33% of any outstanding

loans to be repaid by 31 December

2031, 50% by 31 December 2032

and 100% by 31 December 2033. As

at 30 April 2025, £17.9 million was

an outstanding loan (2024: £nil).

With borrowings of £678 million,

the Group’s gross cash holdings of

over £1 billion throughout the year

have been placed on deposit with

its six relationship banks.

Joint ventures

Included within non-current assets

are investments in joint ventures

accounted for using the equity

method which are at £243.4

million at 30 April 2025 (2024:

£227.0 million). The net £16.4

million increase in the year arises

from Berkeley’s 50% share of

twomovements:

— Share of profits earned in joint

ventures of £14.7 million; and

— Share of loan contributions to

site specific joint ventures of

£1.7million.

In St Edward, 282 homes

were completed in the year

at an average selling price of

£499,000 (2024: 406 homes at

£788,000). Completions occurred

predominately at its South-East

developments, Hartland Village in

Fleet, Green Park Village in Reading

and Highcroft in Wallingford.

In total, 2,429 plots (2024: 2,502

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 91 was approved by the Board

and signed on its behalf by:

Rob Perrins

Chief Executive

20 June 2025

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 31

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

518.1

2021

2022

2023

2024

2025

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 2030:

Pre-tax return on equity

(%)

18.7

17.5

16.5

2021

2022

2023

2024

2025

This is the efficiency of the returns

generated from shareholder equity

inthebusiness.

Read more on remuneration on page 128.

Definition: This is measured by calculating

profit before tax as a percentage of

the average of opening and closing

shareholders’ funds. See page 222.

Link to Our Vision 2030:

Net cash

(£m)

410.4

268.9

1,128.2

2021

2022

2023

2024

2025

This provides a measure of the financial

strength of the Group.

The £0.3 billion of net cash at 30 April

2025 combined with £1.2 billion of

borrowing capacity provides the Group

with total liquidity of £1.5 billion.

Definition: Cash and cash equivalents,

less total borrowings. See page 217.

Link to Our Vision 2030:

Net asset value per share

(£)

33.63

31.01

28.18

26.12

2021

2022

2023

2024

2025

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 221.

Link to Our Vision 2030:

Cash due on forward sales

(£m)

1,403

1,701

2,136

2,171

1,712

2021

2022

2023

2024

2025

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222.

Link to Our Vision 2030:

Future gross margin

in land holdings

(£m)

7,629

8,258

6,884

2021

2022

2023

2024

2025

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 2030:

528.9 14.9

337. 3

532.0 16.2

35.95

6,929

6,722

32 | BERKELEY GROUP 2025 ANNUAL REPORT

Non-Financial KPIs

Net Promoter Score (NPS)

(Rate)

77.9

2021

2022

2023

2024

2025

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 +59 (Home Builders Federation (HBF),

March 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 2030:

Annual Injury Incidence

Rate (AIIR)

(Rate per 100,000 people)

2021

2022

2023

2024

2025

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 306

(Health and Safety Executive (HSE),

November2024).

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 2030:

Direct apprentices and training

(%)

8.9

7.2

2021

2022

2023

2024

2025

This measure shows the proportion of

our employees who are an apprentice,

graduate or sponsored student.

On average, we had more than 100

apprentices, 50 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 2030:

Greenhouse gas (GHG)

emissions intensity

(tCO

e/100 sqm)

0.28

0.61

0.95

2021

2022

2023

2024

2025

This measure relates to the GHG emissions

resulting from our direct activities to the

floor area legally completed in the year.

The figure is disclosed on an operational

reporting boundary, as further explained in

the Directors’ Report on page 164.

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 venture activities.

Link to Our Vision 2030:

Affordable housing subsidies

and wider contributions

(£m)

580

370

560

556

204

2021

2022

2023

2024

2025

This measures our contribution to

affordable housing subsidies and wider

community and infrastructure benefits

delivered or 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

value of community and infrastructure

benefits committed to under Section 106

agreements during the year, together

with the affordable housing subsidy on

affordable homes delivered in the year

with reference to open market value.

Link to Our Vision 2030:

Brownfield regeneration

(%)

2021

2022

2023

2024

2025

This measure shows the proportion of

our homes delivered during the year

(including joint ventures) on brownfield

regeneration land.

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 2030:

Key | Our Vision 2030 priorities

Customers

Quality

Communities

Climate action

Nature

Employee experience

Modernised production

Future skills

Supply chain

Shared value

81.6

80.2

79.2

77. 2

102

124

8.7

9.5

10.0

0.30

0.27

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 33

Our Vision 2030 is our

ambitious responsible

business strategy. It

centres on 10 strategic

priorities which help

to drive our continued

success, whilst setting us

apart andmaximising the

positiveimpact we make.

An integrated

strategy for ESG

Our Vision 2030 provides a framework

for how we address Environmental,

Social and Governance (ESG) issues. It

includes topics such as sustainability,

health and safety, and build quality,

and encompasses our approach

with a number of stakeholders such

as customers, employees and the

supplychain.

Our Vision 2030 includes 10 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.

Tackling material issues

A materiality assessment was

undertaken when developing our

strategy in 2020, based on

international best practice from the

Global Reporting Initiative (GRI) to

help identify the priorities. It included

extensive research, together with

input from more than 40 internal

and external stakeholders.

Strong governance

Our Vision 2030 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,

Executive Committee member

responsible for sustainability, Group

Executive for Responsible Business

and Head of Sustainability. ESG

progress is taken into account in

ExecutiveRemuneration.

Embedding it day-to-day

Our Vision 2030 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 Group

committees (see page 103) to embed

Our Vision 2030 and to drive progress

in each priority area.

Reviewing our strategy

We are now at the halfway point

of the 10 year strategy we set out

in2020.

During the course of 2026 we will be

reviewing the strategy and timeline in

the context of our new Berkeley 2035

strategy for the business.

Read more about the Berkeley

Foundation on pages 54 and 55

The Berkeley Foundation

We established the Berkeley

Foundation in 2011 as an independent

charity to support young people

and their communities to thrive

and be a force for change in the

world. It is funded by Berkeley and

our employees volunteer their time,

expertise and money to support the

Foundation and its charitypartners.

WhatHouse? Awards 2024

Best Large Housebuilder

RESI Awards 2024

Large Developer of the Year

London Construction Awards 2024

Apprenticeship Initiative of the Year

Better Society Awards 2025

Philanthropy Award

Awards

ESG performance

pages 56 and 57

Climate-related disclosures

pages 58 to 75

Section 172(1) Statement

page 76

Performance

and disclosures

Non-financial and Sustainability

Information Statement page 77

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 35

Our Vision 2030 strategy overview

Our responsible business strategy sets out our vision

to maximise our positive impact on society, the

economy and the natural world through 10 strategic

priorities. It is an integrated and holistic strategy,

so each priority supports the others and makes a

valuable contribution to achieving our vision.

Places that stand the test of time

What we create

Customers Quality Communities Climate action Nature

Put our customers

at the heart of our

decisions and provide

an industry-leading

home buying

experience.

Lead the industry

in producing high

quality, safe homes

for all.

Transform underused

land into unique,

well connected and

welcoming places

where people

and communities

can thrive for the

long-term.

Play an active role

in tackling the global

climate emergency by

creating low carbon,

resilient homes.

Create a biodiversity

net gain (BNG) and

make a measurable

contribution to the

natural environment

on every development.

Maintaining the trust,

loyalty and advocacy

of our customers

is fundamental to

our business model

and sets Berkeley

apart from other

homebuilding brands.

Creating unique

homes and places

of lasting quality

is fundamental

to our brand,

purpose, values

and working culture.

Regeneration and

placemaking

can strengthen

communities and

make a lasting

positive difference

to people’s lives.

We believe every

business has a duty

to tackle the global

climate emergency

and we want to

continue leading our

industry in taking

decisive action.

We want to play a

lead role in nature’s

recovery and to

create more beautiful,

wild and open

spaces in the heart

of cities, towns

andcommunities.

Long-term goalWhy is this a priority?Link to stakeholdersLink to risks

1 4 5

7 9 13

3 6 7

13 14

4 5

11 13

10 11 13 10 11 13

— Customers

— Communities and

local government

— Environment

— Government,

regulators

and industry

— Customers

— Communities and

local government

— Supply chain

— Environment

— Government,

regulators

and industry

— Customers

— Communities and

local government

— Government,

regulators

and industry

— Customers

— Communities and

local government

— Government,

regulators

and industry

— Customers

— Government,

regulators

and industry

Scan the code to read more

about Our Vision 2030

36 | BERKELEY GROUP 2025 ANNUAL REPORT

Exceptional people and resources

How we work

Employee

experience

Modernised

production

Future

skills

Supply

chain

Shared

value

Create a positive

working environment

for our people; one

that fosters respect,

support, wellbeing,

safety and inclusivity.

Innovate and harness

modern methods of

construction and

digital technology

to achieve higher

standards of

quality, safety

and sustainability,

whilst increasing

productivity.

Equip our people with

the skills they need

both now and for the

future, enhancing

social mobility and

inspiring new talent

to join the industry.

Build a responsible

and constructive

supply chain; one

that is productive,

practical, profitable,

sustainable, ethical

and dependable.

Allocate capital to

deliver sustainable

returns to our

shareholders whilst

creating value for our

other stakeholders

including through

the work of the

Berkeley Foundation.

Our highly skilled

people are the drivers

of our success and

we want to build

an increasingly

diverse, talented and

productive workforce.

We want to address

housing needs,

whilst delivering high

standards for our

customers efficiently

by using technology

and innovation.

We want our people

to have the skills to

embrace innovative

technologies and

working practices,

while attracting a

new generation to

drive our future.

We want to maintain

strong partnerships

with our supply chain,

sharing goals and

collaborating to

ensure we are the

client of first choice.

We want to make

a lasting positive

impact, using our

unique operating

model and resources

to fulfil our purpose

and deliver value

for all.

Long-term goalWhy is this a priority?Link to stakeholdersLink to risks

6 12 11 12

13 14

6 14 1 2 10

11 12 14

1 2

3 8

— Customers

— Communities and

local government

— Employees

— Government,

regulators

andindustry

— Environment

— Supply chain

— Investors

— Supply chain

— Government,

regulators

and industry

— Employees

— Communities and

local government

— Supply chain

— Government,

regulators

and industry

— Supply chain

— Government,

regulators

and industry

— Employees

— Government,

regulators

and industry

Key | Principal risks

Economic outlook

Political outlook

Regulation

Land availability

Mortgages

Climate change

Sustainability

Health and safety

Planning process

Retaining people

Securing sales

Liquidity

Build cost and programme

Cyber and data risk

Product quality

andcustomers

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 37

Places that stand the test of time

What we create

Customers Quality Communities Climate action Nature

— Provided a

personalised

experience for

each of our

customers,

resulting in an

industry-leading

Net Promoter

Score (NPS) of

+81.6, compared

to an industry

average of+59

(HBF, March2025).

— Won the In-

house Research

Outstanding

Achievement

Award and Gold

Award for the11th

consecutive year.

— Launched

a quarterly

newsletter, a video

setting out the

Berkeley difference

and a brochure,

Why New,

WhyBerkeley.

— Rated the top UK

housebuilder for

build quality by

HomeViews, the

only independent

review platform

for residential

developments in

the country.

— Delivered 67%

of our homes

with zero defects

reported by

customers

compared to 6%

across the industry

(HBF, March 2025).

— Introduced

additional training

on the Building

Safety Act to our

teams.

— Taking a leading

role in working

with Government

and industry via

the Construction

Leadership Council.

— Progressed with

the development

of our long-term

regeneration sites

and delivered

more than 4,000

homes.

— Made community

contributions of

£580m, together

with delivering 535

public amenities

across live

development sites.

— Launched new

Communities

Framework

to ensure a

structured

approach to

building strong

communities right

from the start.

— Undertook

resident surveys

with State of Life

to assess people’s

quality of life.

— Completed more

than 60 embodied

carbon assessments

to date, and

updated guidance

and targets for

ourteams.

— Engaged with

additional

manufacturers on

embodied carbon

for concrete and

blocks, building

on our supplier

engagement for

aluminium.

— Strengthened our

focus on energy

reduction through

our Energy Savings

Opportunity

Scheme (ESOS)

action plan.

— Submitted our

new science-based

targets (SBTs)

forvalidation.

— Completed 57

biodiversity net

gain strategies

todate.

— Shared our

lessons learnt

from eight years

of successfully

delivering BNG.

— Co-chairing the

Future Homes

Hub’s Biodiversity

Net Gain

Implementation

Board with the

Department for

Environment, Food

and Rural Affairs

(Defra).

— Won Property

Week’s ESG

Edge Award

for Excellence

in Habitat

Restoration.

Achieve a

Net Promoter

Score of +70 or

aboveannually.

Achieve a

Recommend to

a Friend score

of at least 95%

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 built

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.

Re-baseline and

achieve validation

on our science-

based targets and

Net Zero target

by 2026.

Achieve a 15%

reductionin energy

consumption from

2023 to 2030.

Develop an overall

approach for

environmental

netgain and trial

it by 2026.

Assess the impact

of nature within

our supply chain

in line with the

Taskforce on

Nature-related

Financial

Disclosures

(TNFD) and

externally report

on this by 2028.

Reduce

construction waste

intensity by 50%

from 2023 to

2030.

2025 performance highlights Progress against targets

Our Vision 2030 progress

38 | BERKELEY GROUP 2025 ANNUAL REPORT

Employee

experience

Modernised

production

Future

skills

Supply

chain

Shared

value

2025 performance highlights Progress against targets

— Improved every

score within our

employee survey

compared to

previous results.

— Hosted a Group-

wide event for

the second year

to celebrate

International

Women’s Day

and implemented

enhanced

parental leave

and menopause

support.

— Maintained

industry-leading

health and safety

standards with

an Annual Injury

Incidence Rate

(AIIR) of 102

compared to an

industry average

of 306 (HSE,

November 2024).

— Progressed

with the

implementation

of an Electronic

Document

Management

System (EDMS).

— Used pre-

manufactured

assemblies and

components for

the vast majority

of our projects.

— Investigated

innovative

techniques and

products to focus

on increasing

productivity.

— Retained Gold

membership of

The 5% Club,

with 8.7% of our

employees in

‘earn and learn’

positions.

— Expanded our

apprenticeship

programmes to

support social

mobility and

diversity and

provide a range of

entry routes.

— Won awards

for inclusive

recruitment of

apprentices and

graduates.

— Ran or took part

in over 280 skills

events to engage

with young people

in education and

inspire them

to consider a

career in the built

environment.

— Engaged with 80

manufacturers

to form Group-

level agreements,

maintaining

product quality

regardless of

prevailing market

conditions.

— Built on established

supply chain

relationships and

collaboration

to improve

efficiencies.

— Supported industry

best practice

in procurement

competence

via involvement

with Industry

Competence

Steering Group

(ICSG) and

the Code for

Construction

Product

Information (CCPI).

— Achieved a pre-tax

return on equity of

14.9%.

— Contributed £2.7

billion to UK

GDP, including an

average of £290k

per home through

taxation and

contributions to

the community.

— Continued

to support

the Berkeley

Foundation and its

charity partners,

with employees

raising £839k and

volunteering 1,900

hours of time.

— The Berkeley

Foundation won

two trophies at

the 2025 Better

Society Awards,

including the

Philanthropy

Award.

Achieved

Increase staff

engagement year-

on-year.

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,

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.

Gift

Apprenticeship

Levy to support

SMEs.

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

information

standards are

improved across

the supply chain

by 2026.

Assess all

contractors

formodern

slavery risk.

Achieve a 15%

pre-tax return

onequity across

the cycle.

Increase

employee

engagement

with the Berkeley

Foundation year-

on-year.

Leverage skills

and expertise

across Berkeley

to support the

Foundation’s

charity partners.

Demonstrate

the impact of

the Foundation’s

worksupported

by the Group.

In progress

Exceptional people and resources

How we work

Key | Progress

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 39

Our Vision 2030 progress continued

Our Vision 2030 is helping

to drive our performance,

spur innovation and

reinforce Berkeley’s

position as a responsible

and sustainable developer.

This section highlights key

initiatives and progress

across our 10 priorities.

Key | Strategic priorities

Customers

Quality

Communities

Climate action

Nature

Employee experience

Modernised production

Future skills

Supply chain

Shared value

The power of communication in creating

a positive journey foreachcustomer

+81.6

Net Promoter Score compared

toan industry average of +59

(HBF, March 2025)

98%

customers would recommend

us to a friend, compared to

an industry average of 94%

(HBF,March 2025)

We use an independent market

research agency to measure

customer satisfaction using two

nationally recognised metrics,

and we consistently score

above industry averages. This

year we have been awarded

both the 2025 Gold Award for

Customer Satisfaction alongside

the Outstanding Achievement

Award, from independent body

In-house Research, for the

11thyearrunning.

We continually seek new ways

of understanding our customers

and how we can enhance

their experience. This year, we

added a new survey question to

deepen our knowledge of brand

perception and we are using focus

groups to gather a longer-term

perspective on how customers

feel five months after moving in,

aiming to improve our service.

93%

of our homes had zero or fewer

than fivedefects, as reported

by our customers

Using research to improve

customer experience

From exceptional customer service

to the quality of our homes, we aim

to delight our customers in every

detail. Our highly trained in-house

sales and customer teams provide

a personal touch to each customer,

supporting them throughout their

journey to buying and settling into

their new home.

Face-to-face contact during

customer visits to sales and

marketing suites pre- and post-

reservation, as well as ‘meet the

team’ community evenings and open

days for customers to measure up

at their new home, are supported

by communications including

virtual tours, video updates of site

progression, quarterly newsletters

and customer moving in guides.

We use our interactive portal,

MyHome Plus, to share information

about the home, the buying process

and customer choices.

Our new brochure, Why New, Why

Berkeley, explains the benefits

of buying a new build home and

particularly a Berkeley home. This

includes details on why our homes

are safe, high quality and energy

efficient, whilst having access to

nature and being well connected

to public transport andto

localcommunities.

We are also trialling a live-chat

service, enabling engagement

with potential customers 24/7 via

ourwebsite.

A new Mystery Shopping process

has also focused on how our

teams engage with customers, as

well as the information conveyed,

to ensure our relationships and

interactions with customers are

thebest they can be.

40 | BERKELEY GROUP 2025 ANNUAL REPORT

First line of defence

We ensure our staff are trained to adhere to stringent BSQA arrangements. We

use a cloud-based platform called FieldView to manage actions in real time and in

collaboration with our contractors, ensuring we keep a digital record throughout

the build stage. We work closely with manufacturers to deliver training to our

teams on their products, to ensure that they are installed to exacting standards.

Second line of defence

Each division has a dedicated local BSQA team which audits and works with our

production teams to assess and offer expert insights on build quality.

Third line of defence

As the industry-leader in BSQA auditing, we have a Group Internal Audit team who

regularly inspect our sites to perform an impartial review at all stages and ensure

strict adherence to all processes. This year the team completed detailed audits

of our projects for Fire and Life Safety and Façade Integrity, with demonstrable

improvements from previous audits in both areas.

We pride ourselves on our

reputation for quality and remain

committed to delivering safe

and high-quality homes for our

customers and communities.

Attention to detail is instilled in our

culture for all aspects of a home’s

delivery, from building safety and

design to final finishes that are

visible to our customers.

We have had a robust Building Safety

and Quality Assurance (BSQA)

system in place for five years which is

continually reviewed to make further

enhancements and to respond to

the evolving requirements of the

Building Safety Act. We ensure

that we have three lines of defence

prior to regulatory submissions and

handover tocustomers.

Rated the top UK

housebuilder for

build quality

We are delighted to be ranked

as the top UK housebuilder for

build quality by HomeViews, the

only independent review platform

for residential developments in

thecountry. Verified residents

provide reviews covering all aspects

of buying and living in their new

build home.

We are proud that our customers

have confidence in the build

quality of our homes, reflecting

our continued commitment to

delivering high quality homes our

customers cantrust.

The house quality

compared to other

developers is

outstanding. The

materials they have

used, the design and

high specification.

Customer at Leighwood Fields,

Cranleigh

This achievement is a

strong reflection of your

continued commitment

to delivering outstanding

service and exceeding

the expectations of

your homebuyers.

Yourdedication to

puttingcustomers first

sets a high standard

in theindustry and

reinforces trust in your

brand andthe wider

housing market.

Tom Weston | Chief Executive,

In-house Research

Delivering high quality

homes to ourcustomers

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 41

Our Vision 2030 progress continued

Ensuring workforce

competence inbuilding safety

The cornerstone of building safety

is competence; ensuring that

individuals and organisations have

the appropriate skills, knowledge,

experience, and behaviours. For

Berkeley, this includes ensuring

individuals have appropriate

qualifications and that training is

undertaken in line with a detailed

Berkeley training roadmap.

This year we have progressed our

training offering on the Building

Safety Act, introducing the

industry’s first training modules

on the Principal Designer and

Accountable Person duty holders

set out in the Building Safety Act, in

addition to our existing foundation

and contractor modules.

Our accredited training

organisation, The Berkeley

Academy, has worked with the

Construction Industry Training

Board (CITB) to convert these

modules into industry training

standards to improve the

competence of the wider industry.

We have also implemented a new

contractor assessment process

aligned to the requirements of

the Building Safety Act. We have

worked with our contractor,

consultant and material supply

chains to support them through

these significant industry changes,

enabling them to demonstrate

their organisational and

workforcecompetence.

Driving industry best practice

through proactive support

Berkeley is playing a pivotal role

in building safety through the

Construction Leadership Council

(CLC) and various other industry

groups. Karl Whiteman, a member

of Berkeley’s Executive Committee,

is the CLC’s Industry Sponsor for

Building Safety and continues to

work closely with the Government

and the Building Safety Regulator

to help them shape a workable and

effective gateway process.

We are members of the commercial

and procurement group under the

Industry Competence Steering

Group (ICSG) set up to create

a competence framework for

procurement professionals in the

built environment sector. Having

published the framework in April

2025, the group will now develop

and roll out training and assessment

to ensure that the framework is fully

adopted across the industry.

We have also supported the

development of the Code for

Construction Product Information

(CCPI) which ensures we can

deploy products that are supplied

with clear, accurate, accessible,

up to date and unambiguous

product information. Products

that are verified by CCPI adhere to

these information standards, which

enable us to continue to develop

quality buildings that meet safety

and performance standards. They

also aid our capture and submission

to the Building Safety Regulator of

an accurate record of building data

throughout the lifecycle of a project.

A strategic

supply chain

for materials

Our extensive materials supply

chain is critical to meeting our

production needs. To support

resilience of supply for common

materials, we have established

manufacturer design and

service level agreements with

key companies. These include

cross functional assessment

for items such as embodied

carbon, modern slavery and

labour abuse, sustainability

and build quality alongside

technical compliance and

qualitystandards.

With more than 80 agreements

now in place and more

continually being added, we are

able to maintain high standards

and continuity of supply despite

changing and unpredictable

marketconditions.

42 | BERKELEY GROUP 2025 ANNUAL REPORT

Combatting modern slavery and labour abuse

All Berkeley employees are

required to complete training on

combatting modern slavery and

we have embedded due diligence

and risk management processes

within our commercial and

construction activities, including

a questionnaire that is completed

for all new tenders, and a

checklist that must be completed

during all factory visits.

We ensure that each Site Modern

Slavery Lead, the most senior

person on each construction

site, receives detailed training to

understand their role in raising

awareness, as well as responding

to and escalating modern slavery

concerns. This interactive training

involves time to discuss potential

risks on site, how processes could

be improved to mitigate any risks

and promote proactivity in other

areas of the business where this

may not yet have been considered.

We continue to collaborate

with industry and are part of

the Supply Chain Sustainability

School’s Built Environment

Against Slavery Group, the largest

anti-slavery collaboration in the

UKbuiltenvironment.

Supporting and

collaborating

withour valued

supply chain

Our goal is to build a responsible

and constructive supply chain;

one that is productive, practical,

profitable, sustainable, ethical

anddependable.

We work closely with our supply

chain on a daily basis on site as

well as helping them plan for future

opportunities across Berkeley.

We have been sharing project

forecasting details with both

material and contractor members of

our supply chain since 2017, with this

open dialogue forming a critical part

of long-term relationship building.

Feedback is also promoted to

continually improve services

onboth sides.

Following the success of our

first Group-wide Supply Chain

Conference in 2023, we are

planning another one to be held

in late 2025, which will build on

our established relationships

and enable collaboration on

topics such as environmental

management, equity, diversity and

inclusion, and labour exploitation.

Recognising that given the scale of

this issue, it cannot be addressed

by one company alone, we are

proud to be part of a construction

sector peer to peer working group

with representatives from Laing

O’Rourke, Skanska and Morgan

Sindall to share and discuss our

approach to a variety of topics

including modern slavery. This

year in collaboration with the UK’s

Modern Slavery Helpline Unseen,

the peer to peer group initiated and

produced a publicly available short

video to be used in construction

site inductions to raise awareness of

modern slavery and labour abuse

throughout theindustry.

Scan the code

to watch the video

onmodern slavery

Scan the code

to read our Modern

SlaveryStatement

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 43

600

acres of publicly accessible green

space or parks being developed

on live development sites,

connecting people withnature

Our Vision 2030 progress continued

We are proud to specialise in

regenerating brownfield sites, with

the highest potential for positive

change. Reviving neglected sites

is often the most sustainable place

to build, delivering new homes,

amenities, jobs and growth where

they are most desired. Given the

scale of these challenging sites, our

holistic placemaking programmes

can take up to 30 years to complete.

This year we were proud

to launchour latest report

BrownfieldPlanning Passports:

TheFast Track to Growth at the

Houses of Parliament. The report

explores thechallenges and

opportunities ofregeneration

A focus on brownfield sites where we

can make valuable andenduring contributions

92%

of live development sites

incorporate community facilities,

in addition to the landscaped-

open space that is delivered on

every site

535

community facilities will be

provided, including dedicated

places for communities to meet,

amenities and shops

>20

sports facilities will be provided,

contributing to improved

health and wellbeing and

socialintegration

>140

children’s play spaces will be

provided, together with more

than 25 schools and nurseries

43,000

people reached by our

engagement activities, including

15,000 via careers events

The Green Quarter, Ealing

and how it can accelerate much-

needed development without

sacrificing quality, affordability,

orenvironmental concerns.

Our teams work hard to engage

with the communities in the

neighbourhoods we develop, and to

champion our industry by showcasing

the breadth of opportunities available

to people from all walks of life, as

well as helping people to overcome

barriers and build a fairer society.

We prioritise the early delivery of

community engagement activities,

public amenities and natural spaces

to ensure local communities feel the

benefits of regeneration as soon

aspossible.

long-term regeneration sites

650

events held to engage local people,

including 280 careers events

44 | BERKELEY GROUP 2025 ANNUAL REPORT

Community event on top of Oval Village’s Gasholder

apprentices supported directly

and through our supply chain

career-related events held

Oval Village –

transforming an historic site

into a thrivingcommunity

— One of our supply chain

apprentices working on site

was recognised by Lambeth

Council as the BeLambeth

‘Apprentice of the Year’ 2024,

and we were also awarded

‘Highly Commended’ in

the ‘Employer of the Year’

awardscategory.

— Hosted a unique game of

cricket inside the Victorian

gasholder to mark the Berkeley

Foundation’s £750,000

commitment to disability sport

with the Lord’s Taverners.

— Restored a once-neglected

garden next door to Charlie

Chaplin’s former home,

revitalising a cherished

localspace.

This complex brownfield site,

consisting of four derelict

gasholders and an adjacent

supermarket and warehouse, is being

knitted back into the local fabric

and brought to life as a sustainable

mixed use neighbourhood.

With a network of pedestrian

streets, public squares and

biodiverse landscaping, Oval

Village will be a connected and

welcoming part of the London

Borough of Lambeth, delivering

1,360 high quality homes,

community spaces and a mix of

amenities and workspace. The

site’s Grade II Listed gasholder is

being sensitively restored and will

form the historic centrepiece of

Oval Village.

This year, we have been delighted

to have worked in partnership to

deliver the following at Oval Village:

— Completed the structural

frame for 199 homes within

the Grade II Listed gas holder,

alandmarkachievement.

— Won Gold at the Considerate

Constructors Scheme (CCS)

National Site Awards 2025,

recognising our commitment to

the highest industry standards.

— Held more than 24 community-

focused activities and events.

— Hosted 20 work experience

placements, and delivered 60

career-related events.

— Supported more than 30

apprentices working for

Berkeley and with our supply

chain on site.

Scan the code

to read more on Oval Village

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 45

Strategy in action

A framework to meet the

needs and aspirations of

our neighbourhoods

This year we have launched our new Communities

Framework which builds on our previous work on

building strong communities and ensures a structured

approach right from the start. Our framework considers

both the physical and social fabric of a place and is an

important integrated part of our wider placemaking

and design process. The steps of the framework must

be recorded in each development’s Community Plan

which is started pre-planning and is bespoke to each

development. These Community Plans are shared

with our stakeholders and the local communities.

We use them to demonstrate our commitment

to the communities in which we work.

Our Vision 2030 progress continued

The principles that underpin

our framework:

OPEN: we listen carefully to the people and

communities around our sites to understand

their differing concerns and priorities.

INCLUSIVE: our core intent is to create

communities where a broad spread of

society feels included and where existing

stakeholders feel welcomed to contribute.

LONG-TERM: communities are hugely

complex, and it takes time, expertise and

sustained capital investment to make a

positive difference.

PROPORTIONATE: our approach must

reflect the scale and potential of our plans.

We must not promise more impact than we

can deliver.

COLLABORATIVE: our approach is highly

collaborative, and we look to develop lasting

relationships with a network of local people

and organisations.

BUILDING TRUST: this is fundamental to

successful placemaking. We earn local

trust through applying these principles and

through listening to local views to deliver on

our promises.

Establish Relevant

Local Needs and Aspirations

Deliver Social Value

Ensure Governance

and Stewardship

STEP

46 | BERKELEY GROUP 2025 ANNUAL REPORT

Our approach In action

Understanding the interests, aspirations

and vision of our local stakeholders and

the communities in which we work is

fundamental. This is why meaningful

community engagement is the vital first

step for every project, and further

engagement then continues throughout

thedevelopmentstages.

The vision and plans for Bromley-by-Bow were

shaped through a far-reaching community

engagement programme, which included more than

270 visits and tours to the site by local people and

community groups. In addition, we have engaged with

more than 300 young people living locally through a

mix of careers events and workshops.

This proactive approach has helped meet a

wider range of local people and gain a deeper

understanding of local needs and aspirations. The

priorities of local people and groups included more

eateries and retail, public spaces, outdoor gym

equipment and spaces for sports.

Once the needs and aspirations of the

community, both physical and social, have been

established we develop a plan for delivering

social value. This will come from four areas:

working with partners; delivering community

events and activities; creating an action plan

regarding specific local needs; as well as

communicating the benefits that the overall

development will deliver.

The vision for the community at The Green Quarter

in Ealing and surrounding neighbourhoods is to

establish meaningful relationships and feel proud of

the area.

Through our partnership with OPEN Southall we

have delivered a popular community and creative

hub called Parkside Yards. It includes a gastro pub,

café, florist, gallery, tree nursery, padel courts and

affordable work and community event spaces.

We engage with local people through an annual

programme of community and careers events. We

have also delivered major upgrades to the local road

network and created new parks.

We look to establish the most appropriate

form of long-term governance for each site,

which gives local residents clear ownership and

agency over the way their neighbourhood is

managed and looked after long into the future,

from social committees and community liaison

groups to community funds, to support the

wider community. We also recognise that the

ultimate test of each place is through the lived

experiences of our customers and residents

which we can then feed back into the process.

Established in 2014, we have recently celebrated

10 years of the London Dock Community Fund

in partnership with the East End Community

Foundation. Its goal is to enhance the local area

providing long-term stewardship and governance.

The Fund allocates money annually to support

community projects and charities in the local area.

Over the last 10 years, it has awarded more than

£208,000 in grants to 99 community projects. More

than 8,000 local residents have benefited from

projects such as drama and gardening clubs and

health and wellbeing initiatives.

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 47

Our Vision 2030 progress continued

Delivering low carbon, resilient homes

Carbon emissions from homes

whilst they are in use by residents

are an area covered by regulation

and dependent on the rate of

decarbonisation of the grid. It is

an ongoing focus as the industry

moves towards producing zero

carbon ready homes, removing

the use of gas and delivering all

electric homes with low-carbon

heating and solar photovoltaic

(PV) panels.

In advance of the Future Homes

Standard to be launched in

autumn 2025 we have been

preparing our developments

for the expected changes and

incorporating technologies such

as heat pumps and PV panels.

At Heron Wharf, we have

conducted ‘live-in’ trials with three

different exhaust air heat pump

technologies to gain valuable

insight into the experience of

living with and using each low-

carbon solution.

We also continue to engage with

Government and industry on

the topic, for example through

our membership and active

engagement with the Future

Homes Hub and the UK Green

Building Council (UKGBC).

Lowering carbon from our operations

Having completed energy audits of

our sites, sales suites, offices and

vehicle fleet in compliance with

the Energy Savings Opportunity

Scheme (ESOS), we have produced

an energy reduction action plan.

A large focus in the year has

been on reducing out-of-hours

consumption, with several sites and

offices adopting energy monitoring

systems and consumption alarms to

flag high usage for prompt action

by our teams. We are also working

to decarbonise our company

vehicle fleet with new or replaced

vehicles to be hybrid or electric

from 2026.

We continue to directly procure

responsibly sourced biodiesel HVO

(Hydrotreated Vegetable Oil) to

replace traditional diesel on our

construction sites. We are also

working with JCB to understand

more about hydrogen powered plant

and how this could work on our sites

as a clean poweralternative.

95%

of completed homes achieved

an EPC rating of B or above

77%

reduction in scopes 1 and 2

emissions since 2019

Strategy in action

Supporting

climate change

research and

development

We have been working with

the Supply Chain Sustainability

School on a project funded by

CITB to produce a series of

videos on how net zero is being

achieved across the industry,

and what skills are being used

to achieve this. These will be

made publicly available for

the benefit of the industry,

and particularly SMEs, to

share knowledge and develop

understanding on how to

transition to net zero.

We are taking part in the Mayor

of London’s Better Futures

Innovation Challenge which

provides support to eligible

SMEs who are seeking to

innovate and bring low carbon

solutions to market. We’ve

partnered with Energy Carbon,

a company which provides

surface heating systems

using low voltage, far infra-

red technology, designed to

minimise energy usage and

maximise efficiency and thermal

performance. This technology

will now be trialled in one of our

sales and marketing suites.

In partnership with Camden

STEAM (Science, Technology,

Engineering, Arts and

Mathematics), we have

supported climate and

environmental workshops

for a Green Dragon’s Den

Competition. Pupils pitched for

funds to support their school

projects to tackle climate

change, as well as attending

workshops and discussions on

sustainable development, air

quality and recycling.

Further detail is included in our climate-related disclosures on pages 58 to 75

Air source heat pumps

48 | BERKELEY GROUP 2025 ANNUAL REPORT

We have been taking voluntary

action on unregulated embodied

carbon emissions for several

years. These emissions from the

materials and services we use to

build the homes are a significant

impact for us, accounting for

more than half of the carbon

impact of the homes we build

throughout their lifetime. We have

now completed more than 60

embodied carbon assessments,

equipping our teams with

knowledge and experience in how

to reduce emissions.

Since we undertook our

embodied carbon baselining

exercise and set our original

reduction targets in 2022, we

have seen significant changes

in the planning and legislative

landscape including updates

to the Building Regulations

(FLOS and B (fire safety)).

These changes have led to an

unintended consequence of

increasing embodied carbon by

as much as 30% depending on

design mitigations employed.

For example, many buildings

now need to incorporate larger

cores to accommodate secondary

means of escape which requires

more concrete, and changes in

ventilation requirements have

resulted in higher ceilings and

more mechanical ventilation. In

addition, design standards within

London require us to deliver dual

aspect homes, with up to 40%

increased wall area.

Over recent years there have

been considerable steps forward

in the industry’s understanding of

embodied carbon. This year the

pilot version of the UK Net Zero

Carbon Building Standard was

released. We have chosen to align

our internal targets for project

teams with these industry-wide

limits and to adopt the updated

methodology for calculating

embodied carbon set out by RICS

to ensure comparability in results.

>60

detailed embodied carbon

studiescompleted

The most effective ways to reduce

embodied carbon emissions

Efficient design

Our approach focuses on the design of the development from the outset,

ensuring efficient design to reduce the volume of materials. Optimising the

structural design is key to reducing embodied carbon, as demonstrated at

our Trillium development, where wind tunnel testing allowed the volume of

concretefor the primary structure to be reduced by a third.

STEP

We aim to specify and procure materials with increased recycled

content and lower embodied carbon. We have focused on engaging

with material manufacturers for some of the most impactful

materials, such as aluminium and concrete.

For aluminium, our teams are now able to access low and ultralow

carbon options for windows and facades, reducing embodied carbon

by up to 75% at no or limited impact on costs and programme.

Thebenefits of Group-wide agreements with manufacturers are now

being realised, such as lower carbon windows installed at TheGreen

Quarter during the year. Through an improved understanding and

early engagement with manufacturers and frame contractors to

optimise specifications we are also successfully using lower carbon

concrete, with around 75% of deliveries during 2025 usinglower

carbon concrete mixes.

STEP

Low carbon materials

STEP

Low carbon site activities

Once on site, our Sustainability Standards and processes

promote efficient site operations to minimise waste

production and energy and water consumption, all of

which help reduce the embodied carbon of a project.

Driving down embodied carbon

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 49

Our Vision 2030 progress continued

Exemplary delivery

of biodiversity

netgain

Having championed and

pioneered the successful

implementation of biodiversity

net gain (BNG) on new

developments since 2017, we

welcomed the national milestone

of mandatory BNG for new

developments in February

2024. Recognising that the new

requirements are still bedding

in and that there are some

challenges to overcome, we

co-chair a BNG Implementation

Board with Defra via the Future

Homes Hub to help bring

together industry and collaborate

on solutions for successfully

delivering homes and nature.

We have been used by the

Government and others

internationally as an example

of successfully delivering BNG

and will continue to learn

andshare knowledge with

peersandindustry.

This year, we won the Excellence

in Habitat Restoration Award at

the ESG Edge Awards for our

demonstration of a long history

working with stakeholders

and communities to support

biodiversity protection. The

judges praisedour approach to

regeneration and supporting

nature recovery whichfocuses

on knowledge sharing

andcollaboration.

Connecting people with nature

We work hard to help our

communities enjoy nature and feel

the benefits that nature brings,

including better health and wellbeing.

Our preference is for BNG to be

delivered on site where it can benefit

residents and local communities and

help to re-green our towns and cities.

We use specialist ecologists

to ensure that our approach is

location-specific at each site and

fits within emerging local nature

strategies and plans. We also

partner with local Wildlife Trusts to

draw on their expertise to create

natural parks that provide wonderful

wildlife-rich areas for residents and

the wider communityto enjoy.

This year we won the susdrain SuDS

Large New Housing Development

Award at Chelsea Creek for the

integration of canals designed for

recreational use, together with reed

wetlands and green roofs.

A new park has been opened at

King’s Road Park this year, forming

part of the six-acre network of open

landscape being created at the

development, which is expected to

create a BNG of more than 110%.

At The Green Quarter, a new living

wall has been installed, which will

bring many benefits to residents

including improved air quality, health

and wellbeing. Our on-site tree

nursery, consisting of 600 trees, has

an interactive wildlife trail which is

attended by many local schools to

learn about the different UK tree

species and wildlife they attract.

At Hartland Village we have

developed a biodiversity garden

guide to give new residents

information on how they can utilise

their garden space to encourage

biodiversity, from wildflower areas

to drought gardens, with tips on

species and maintenance.

We are developing our understanding of value

chain nature-related dependencies, impacts, risks

and opportunities in line with the recommendations

of the Taskforce on Nature-related Financial

Disclosures(TNFD).

developments committed

toBNGsince May 2017

>1,200

acres of newly created

orenhancedhabitat including

500 acres at a 4,000 home

development in Milton Keynes

Abbey Barn Park, High Wycombe

Scan the code to read more about

our approach to TNFD

50 | BERKELEY GROUP 2025 ANNUAL REPORT

We retain Gold membership of The

5% Club, with 8.7% of our employees

in ‘earn and learn’ positions. On

average this includes more than

100 apprentices, 50 graduates

and 60 sponsored students

studying towards an accredited

external qualification. More than 40

graduates and apprentices joined

us in September 2024 and the next

cohort have been recruited and

are set to start their career with

Berkeley in September 2025.

We were delighted to be named the

second top company to work for

in our sector for both apprentices

and graduates by The Job Crowd,

together with featuring fourth

across all industries for apprentices

and 17

for graduates.

We support skills and training

across our supply chain through

our network of Employment Skills

Managers, who work with our

contractors to grow their own

talent and help tackle some of

the industry’s skills shortages. In

addition, we have partnered with

Workwhile to gift £100,000 per year

of our unallocated Apprenticeship

8.7%

of employees in

‘earn and learn’ roles

Prime Minister at Eastbrook

School visit to TwelveTrees Park, Newham

Levy, with a particular focus on

built environment roles within

London’sSMEs.

Improving our skills system is

a key part of the Government’s

growth mission, and we have been

delighted to host visits to our sites

throughout the year.

The Prime Minister, Sir Keir Starmer,

visited Eastbrook Village in Milton

Keynes where he spent time talking

to 15 of Berkeley’s apprentices.

Bridget Phillipson, Secretary of State

for Education, visited Oval Village

as the Department for Education

celebrated the beginning of National

Apprenticeship Week. Another visit

was made by the Secretary of State

for Work and Pensions, Liz Kendall

and Mayor of the West Midlands,

Richard Parker to Glasswater Locks

in Birmingham to understand how

our training partnership is helping

local people reach their potential in

the workplace.

We work hard to champion our

industry by showcasing the breadth

of attractive opportunities available

to people from all walks of life.

We undertake a range of

engagement activities with people

who may not be aware of the

range of fulfilling careers available,

such as visits to and from local

schools and colleges, attending

industry careers fairs, hosting

work experience placements and

providing mentoring or workshops

on employability skills to those who

areunemployed in local communities.

We have undertaken around 280

events this year with local schools,

colleges and universities, reaching

over 15,000 people.

Championing careers in the builtenvironment

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 51

We support a range of

apprenticeship levels and courses

to enhance social mobility and

diversity and give more people

an opportunity to enter the built

environment sector.

Our approach to hiring apprentices

and graduates is leading the way

in levelling the playing field to be

more inclusive and reduce the

potential for unconscious bias during

the selection process by removing

the use of CVs, anonymising

allapplications and asking role-

specific competency questions to

capture a candidate’s potential.

This year we celebrated

International Women’s Day with a

Group-wide event for the second

year, to reflect on the progress,

challenges and opportunities for

women in the built environment.

The event included a panel of

inspiring women representing

every division of our business

from a range of departments and

levels of seniority. They shared

their experiences as women in

the built environment sector

and at Berkeley and their hopes

for the future. The event was a

fantastic opportunity to celebrate

how far we have come and key

milestones, such as our first all-

female production leadership

team working at South Quay

Plaza, alongside an update from

senior leadership on plans to go

even further to support women.

This year we have improved our

Group-wide employee benefits

including enhanced parental leave

and free access to an externally

provided menopause plan.

Our Vision 2030 progress continued

Taking action on

Equity, Diversity

and Inclusion

Our goal is to foster an

environment where all

differences are valued,

practices are equitable and

everyone experiences a sense

of belonging. Our approach to

Equity, Diversity and Inclusion

(EDI) focuses on five areas:

— Setting the tone by leading

from the top

— Partnering with external

organisations that can

support us on our journey

— Awareness, allyship

andcelebration

— Attracting and recruiting the

best talent

— Using analytics and feedback

to drive change

We run Group-wide

communication and events

on EDI and our autonomous

businesses deliver additional

detailed programmes

andinitiatives.

Using our voluntary employee

survey we are building a

more detailed picture of our

employees and the experience

of different demographics

enabling us to set specific

actions and targets to develop a

more representative workforce.

Supporting women at Berkeley

We have also completed the first

cohort of The Circle Partnership’s

12 month Academy Programme,

supporting women in the sector

to grow in their roles and become

the senior leaders of the future.

Another cohort of women are

now progressing with the 2025

programme and benefiting from

1:1 mentoring, a bespoke two-day

emerging leadership programme

as well as various events on

topics such as setting healthy

boundaries, improving resilience

and presenting with impact.

Interview responses are measured

against an objective scoring matrix

and assessment centres are attended

by assessors who have completed

inclusive recruitmenttraining.

We are delighted that our efforts to

promote inclusive recruitment have

been recognised by winning the

‘Candidate Assessment’ accolade

at the In-house Recruitment

Awards 2024 and ‘Apprenticeship

Initiative of the Year’ at the London

Construction Awards 2024.

International Women’s Day event

Inclusive recruitment practices to enhance

social mobility anddiversity

52 | BERKELEY GROUP 2025 ANNUAL REPORT

Our established and robust

approach to health and safety

helps us to consistently outperform

the industry with an Annual Injury

Incidence Rate for the year at 102

per 100,000 people, compared

to an industry average of 306

(HSE,November 2024).

Our teams operate to stringent

Group-wide health and safety

standards that are audited regularly

by our Group audit team, as well

as audits completed by a Berkeley

Director twice a month. We have

a large team of local health and

safety managers who provide

expert advice and guidance to

the project teams on a daily

basis extending across safety,

occupational health and wellbeing,

and welfarestandards.

Targeting the

physical working

environment

Focusing on risk

management

and encouraging

positive behaviour

and attitudes

Targeting

improvements

in health and

wellbeing

We maintain our three established programmes:

The nature of regeneration and

developing apartments results in

higher risk activities. Our approach

is to ensure that every site applies

the same high standards, even if

it is not high risk. Our Working at

Height campaign instils a focus

within our workforce on this

keytopic.

We offer a range of initiatives

with the aim of having a positive

impact on the mental health of

our employees. All employees

have access to Bupa’s Employee

Assistance Programme offering

24/7 access to counselling and we

have a network of more than 400

mental health first aiders within

the business, trained to spot the

signs of poor mental health and

offer support.

1,970

health and safety audits completed

102

Annual Injury Incidence Rate

per 100,000 people compared to

an industry average of 306 (HSE,

November 2024)

Maintaining industry-leading health,

safety and wellbeing standards

Upskilling our

employees

The Berkeley Academy is an

Approved Training Organisation

(ATO) with the Construction

Industry Training Board

(CITB) and delivers training

for our employees across two

trainingcentres.

The Academy runs training on

many topics such as health and

safety, sustainability, building

safety and quality assurance

(BSQA), with over 1,000

colleagues trained on BSQA

inthe year.

This is supplemented by

training run locally by our

divisions covering topics such

as behaviours in the workplace,

leadership and management

skills and EDI.

We also offer opportunities

to work towards external

qualifications and professional

accreditations, with more

than 130 of our colleagues

choosing to upskill during

the year through recognised

externalqualifications

andapprenticeships.

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 53

58%

of Berkeley employees involved

with Berkeley Foundation activities

in the year

1,900

hours volunteered by Berkeley

employees in the year

Our Vision 2030 progress continued

Understanding

employee

perspectives

We were pleased to see

improvements in each of the

three main areas of our 2024

employee engagement survey

– engagement, health and

wellbeing, and diversity and

inclusion – compared to the

2023 scores.

Improvements were also

demonstrated in each and

every one of the underlying

sub sections since the previous

survey, with the most notable

seen for diversity and inclusion,

organisational support

andautonomy.

We were able to see increases

clearly attributed to actions put

in place following the preceding

survey, demonstrating the

benefits of each action such

as investment in management

training, improving our office

facilities, providing more

agile working practices and

enhancing parental leave.

Supporting the work of

theBerkeleyFoundation

The Berkeley Foundation remains

deeply embedded at Berkeley and

our employees give their time and

expertise to support its partners,

together with charitable donations

and fundraising. More than half

of our employees chose to get

involved in the Foundation’s work

over the last year.

Employees were encouraged to use

their allocated volunteeringday

benefit through two volunteering

campaigns this year. All volunteers

reported that they’d like to

volunteer again, and 84% felt better

connected to the communities in

which we operate.

The volunteering opportunities

ranged from working at a Crisis

charity store, playing games and

serving food at a half-term activity

week for the Mayor’s Fund for

London (Kitchen Social), painting

and gardening at the sensory

garden at Richard House Children’s

Hospice, and many more.

We are delighted that the

Berkeley Foundation won

twotrophies at the 2025 Better

Society Awards, recognising

the positive impact it is having

across its partnerships and the

wider philanthropic sector:

— Philanthropy Award,

withBerkeley Group

— Partnership with a National

Charity, with MyBnk

Street Elite graduation at Grand Union

54 | BERKELEY GROUP 2025 ANNUAL REPORT

The Berkeley Foundation

This year was another

successful year for the Berkeley

Foundation, deepening impact

in the communities where

Berkeley operates through

long-term charity partnerships

and continued support from

Berkeleyemployees.

The Foundation worked with 43

expert frontline charities across

London, Birmingham and the

South of England to drive change

across five impact goals.

The Foundation invests in

four ways: strategic long-

term partnerships; community

partnerships which are chosen by

staff and local to Berkeley’s sites

and offices; the Resilience Fund

which supports small-to-medium

sized organisations with their own

development; and the Development

Fund which is a flexible funding

pot in order to explore new ideas

andopportunities.

£839k

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

>11,000

people reached through the

Foundation’s charity partnerships

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.

The Foundation

renewed its strategic

partnership with

MyBnk, supporting

its financial education

programme aimed

at preventing youth

homelessness

in London and

Birmingham.

The Foundation

continues to support

its strategic partners:

Crisis, the national

charity for single

homeless people; and

the New Horizon Youth

Centre, a leader in the

youth homeless sector

in London.

The Foundation

renewed its strategic

partnership with The

Change Foundation

in support of the

Street Elite training-

for-work programme,

committing £1.5m over

the next five years.

The Foundation

continues to support

its strategic partner

Imperial College

London to inspire

children and young

people to engage in

Science, Technology,

Engineering and

Mathematics (STEM).

The Foundation

renewed its strategic

partnership with the

Mayor’s Fund for

London in support

of the Kitchen

Social programme,

committing more than

£300,000 over the

next three years.

The Foundation

continues to support

its strategic partner

The Lord’s Taveners,

the UK’s leading youth

cricket and disability

sports charity.

During the year

Berkeley colleagues

assisted the

Foundation’s strategic

partner Groundwork

London with its youth

leadership programme,

providing feedback on

the young participants’

social action projects.

The Foundation

also 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.

This year saw the

Foundation launch

five new charity

partnerships through

the third year of its

Resilience Fund, aimed

at strengthening

the resilience of

organisations working

with young people

experiencing or at risk

of homelessness.

The fourth year of the

fund has now been

launched, to provide

unrestricted grants to

15 grassroots partners

affected by the racist

riots in August 2024.

Impact goal2025 key highlights

Street Elite Festival,

The Green Quarter, Ealing

Scan the code

to find out more about the

Berkeley Foundation

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 55

ESG Performance

We monitor a range of Environmental,

Social and Governance (ESG) indicators

across our business activities.

Indicator Metric Unit 2025 2024 2023

Link to

priorities

New homes Completed homes, including joint ventures # 4,329 3,927 4,637 All

Benchmarks

and indices

CDP Climate Change questionnaire Rating B

A A-

FTSE4Good Index Series listed company Y/N Y Y Y

MSCI ESG Rating Rating AAA AAA AAA

S&P Global Corporate Sustainability Assessment #/100 69 56 53

Sustainalytics ESG Risk Rating (Note: smaller values

indicate lower risk)

Rating 12.8

(Low)

14.0

(Low)

14.1

(Low)

Under review by CDP

Environmental

Indicator Metric Unit 2025 2024 2023

Link to

priorities

Environmentally

responsible

operations

Number of environmental prosecutions # 0 0 0

Monetary cost of environmental fines and penalties £ 0 0 0

Scopes 1 and 2 (location-based) emissions tCO

e 5,027 5,245 5,223

Scopes 1 and 2 (market-based) emissions tCO

e 896 917 963

Water consumption m 166,773 182,285 201,979

Total waste generated (including construction,

demolition and excavation wastes)

tonnes 274,747 388,765 596,921

Total waste diverted from landfill % 96 96 97

Sustainable

homes

Completed homes with an EPC rating of at least B % 95 93 93

Average EPC score and rating # 84 (B) 84 (B) 84 (B)

Completed homes with an Environmental Impact

Rating (EIR) of at least B

% 96 96 98

Average internal water efficiency of completed

homes

lpppd 102.2 101.2 102.6

Completed homes constructed on brownfield land % 92 87 86

Completed homes with internal recycling facilities % 100 100 100

Sustainable

places

Developments newly committed to deliver BNG # 2 2 8

% 100 100 100

Developments newly committed to deliver BNG on

site

% 50 100 100

Live development sites regenerating brownfield

land

% 72 75 76

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

Key | Our Vision 2030 priorities

Customers Quality Communities Climate action Nature

Employee

experience

Modernised

production

Future skills Supply chain Shared value

Scan the code

for data notes and

more metrics

56 | BERKELEY GROUP 2025 ANNUAL REPORT

Social

Indicator Metric Unit 2025 2024 2023

Link to

priorities

Charitable giving

and the Berkeley

Foundation

Employees involved with GAYE % 27 29 30

Employees involved with the Berkeley Foundation % 58 61 59

Considerate

construction

Average Considerate Constructors Scheme (CCS) score #/50 44.4 44.2 44.1

Customer

experience

Six month rolling average NPS (to March 2025) # 81.6 80.2 79.2

Customers who would recommend us to a friend (to

March 2025)

% 98.2 97.7 97.5

Health and safety AIIR per 100,000 people – direct employees and on-site

contractors

# 102 52 79

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

AIIR per 100,000 people – on-site contractors only # 124 57 106

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

# 0.05 0.02 0.04

Skills and training Average monthly percentage of direct workforce who

are graduates, direct apprentices or sponsored students

undertaking formal training

% 8.7 9.5 10.0

Graduates joining the business via Berkeley’s Graduate

Scheme programme

# 29 21 43

Average monthly number of directly employed

apprentices

# 107 151 162

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 2.5 2.6

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 760 800 837

Contribution to facilities and services for local

communities, including affordable housing subsidies

£m 580 370 560

UK jobs supported annually directly and indirectly

through the supply chain

#,000 27 24 29

Supply chain Average number of days taken to pay suppliers # 29 29 30

Average monthly number of on-site contractors #,000 7. 3 8.8 9.5

Quality Homes with five or fewer defects reported by

customers on completion

% 93 91 91

Governance

Indicator Metric Unit 2025 2024 2023

Link to

priorities

Board of

Directors

Executive Directors # 2 2 5

Independent Non-Executive Directors # 7 7 10

Board of Directors – Male % 56 56 67

Board of Directors – Female % 44 44 33

Average tenure of Board of Directors yrs 7 6 7

Employees

(as of 30 April)

Total employees # 2,552 2,610 2,802

Total employees – Male % 60 62 63

Total employees – Female % 40 38 37

Non-Board senior management – Male % 50 50 29

Non-Board senior management – Female % 50 50 71

Reporting to Board or senior management – Male % 65 68 69

Reporting to Board or senior management – Female % 35 32 31

Note: Metrics include joint venture activities.

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 57

Berkeley aims to play an active role

in tackling the global climate emergency.

Climate action is a strategic priority

for the business and is embedded

within Our Vision 2030, with our

overarching target to be a net zero

business by 2045. Our transition

plan to achieve this is holistic and

transformative, encompassing our

direct business operations along

with the design of the new homes

and places we create in partnership

with our supply chain.

Having already achieved a 77%

reduction in our scopes 1 and 2

greenhouse gas (GHG) emissions

since 2019, we are looking to

push ourselves further. This year

an action plan to target energy

reduction was submitted to the

Environment Agency in line with the

requirements of the Energy Savings

Opportunity Scheme (ESOS).

Our focus on the currently

unregulated emissions associated

with the materials used to build

new homes will provide our

greatest impact to overall emissions

reductions. The embodied carbon

assessments that we complete during

the planning and design stages of

our developments enable our teams

to make more informed decisions

in relation to design, specification

and sourcing. Supply chain

engagement is also key; we continue

to engage with manufacturers to

better understand and influence the

decarbonisation pathways of high

impact material groups.

Updated near-term and new net

zero science-based targets (SBTs)

across scopes 1, 2 and 3 have been

submitted for validation this year to

continue to drive action.

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 IFRS

S2 Climate-related Disclosures

published in June 2023. IFRS S2

integrates and builds on the TCFD

recommendations and incorporates

industry-based disclosure

requirements derived from SASB

Standards. We will look to further

align in future reporting years, with

IFRS S2 set to form the basis of the

awaited UK Sustainability Reporting

Standards (SRS).

Supplementing the climate-related

disclosures within this report,

Berkeley responds to the climate

change elements of CDP’s corporate

questionnaire on an annual basis.

Climate-related disclosures

Climate progress

and roadmap

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 reduction 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 new SBTs,

including net zero targets, to

the SBTi for validation.

Submitted energy reduction

action plan under ESOS.

Assessed heat pump

technologies to determine

the most appropriate for use

in our homes.

58 | BERKELEY GROUP 2025 ANNUAL REPORT

Governance

Theme Page reference Summary

Governance 59 to 60 — The Board is provided with climate action progress updates each quarter

through Our Vision 2030 reporting.

— CEO is the lead sponsor for climate action.

— CEO, CFO and COO attend monthly Our Vision 2030 and Sustainability Board

meetings covering key climate actions including targets and progress on our

transition to net zero.

— Executive Committee receives updates on climate action from the Responsible

Business Executive.

— Responsible Business Executive 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 61 to 66 — 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 is a key risk monitored as part of the Group’s risk

managementprocess.

— 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 191.

Risk

Management

67 to 71 — Climate change identified as a standalone principal risk to the business since 2018.

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

opportunities reviewed and updated in 2025.

— Main Board, Responsible Business Executive, 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.

— Responsible Business Executive and Group sustainability teams 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 75 — Science-based targets in place for scopes 1, 2 and 3 GHG emissions with

performance against these monitored and disclosed.

— Relevant key metrics identified and disclosed, including industry-based metrics

in line with SASB.

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 Action priority area of

Our Vision 2030 incorporating the net

zero transition plan and supported

by Sustainability Standards. These

set out Berkeley’s minimum

requirements for our developments,

as well as our construction site and

supply chain activities, for topics

such as energy efficiency, risk

mitigation measures and reporting.

They ensure that we are aligned

to deliver the strategic actions

and milestones outlined within our

transition plan (see pages 61to65).

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

and sales 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.

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 59

Climate-related disclosures continued

Key | Management roles with responsibility for climate action

Chief Executive

Chief Financial Officer

Chief Operating Officer

Executive Committee member with responsibility for sustainability

Responsible Business Executive

Group Head of Sustainability

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

actions to address these and monitoring performance is summarised below.

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 the Board report for each meeting

including action taken in the year to date and planned next steps.

— Review Group Risk Management Report presented at each Board meeting. Climate change

considered as a principal operating risk.

— Restricted Share Plan awards include an ESG underpin whereby up to 20% will be forfeited

in the event of unsatisfactory progress against strategic and ESG priorities.

— Oversight of Company-wide risk

management process, including climate

action alongside other principal risks.

— Undertake annual assessment of principal

and emerging risks, along with the

adequacy and effectiveness of internal

control systems.

— Consider climate change impacts on

the financial reporting judgements and

estimates in the Financial Statements

(seepage123).

Management Level

Chief Executive Executive Committee Our Vision 2030 and

Sustainability Board

— Designated as accountable lead sponsor

for the Climate Action strategic priority

under Our Vision 2030.

— 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.

— Routinely discuss progress under

the Climate Action priority area and

measures to be implemented to further

drive improvement.

— Consists of CEO, CFO, COO, Executive

Committee member with responsibility

for sustainability, Responsible

Business Executive and Group

HeadofSustainability.

— Meet monthly with climate action 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.

— Risk Executive manages Group risk

process and register, including climate

change as a principal operating risk.

— Identify strategic climate change risks

and opportunities facing the Group

and communicate these to the Group’s

RiskExecutive.

— 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

Responsible Business Executive 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 management sponsor for

the Climate Action strategic priority for

theirbusiness.

— 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 Responsible Business Executive

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

1 2 4 53 1 2 4 53 6

1 2

4 5 6

53 6

1 2 5 63 5 6

60 | BERKELEY GROUP 2025 ANNUAL REPORT

Strategy

Taking action on climate

has been a strategic

priority for Berkeley

since the launch of Our

Vision in 2010 and our

commitment to becoming

net zero by 2045

reinforces this.

Overview of climate risks

and opportunities

Berkeley uses the results of

climate scenario analysis within

our strategic planning processes.

Transitional climate change risks

and opportunities have been

assessed in the short-term (0-2

years) and the medium-term

(to 2030) to align with the time

horizons of Berkeley’s overarching

responsible business strategy, Our

Vision 2030. 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.

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 rental decisions.

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

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.

Transition planning

Responding to the key areas of

transitional risk and opportunities

for the business, and to achieve our

net zero ambitions, our transition

plan focuses on reducing embodied

carbon, low carbon operations

and delivering low carbon homes.

An overview of our transition plan

strategy can be found on pages 62

to 65, with details on key climate

actions taken in the year onpages

48 and 49.

To help ensure the ongoing

resilience of our strategy, actions

are continually reviewed against

evolving risks and opportunities by

the Responsible Business Executive

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.

As part of the development of our

transition plan, Berkeley has been

reviewing our future approach

tocarboncredits. We currently

support the UK-based Retrofit

Credits project developed by HACT

and PNZ Carbon. This pioneering

and unique project uses funds to

retrofit social housing through the

installation of energy efficient

measures, reducing emissions of

existing housing stock whilst also

delivering social value. Our support

in 2025 has an associated co-

benefit of over £140,000 worth of

social value impact for residents

living in the retrofitted homes.

Berkeley recognises that whilst

many organisations have plans in

place to transition to a low carbon

economy, climatic changes will

occur and may affect the homes

and places we develop. 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.

Trent Park, Enfield

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 61

Climate-related disclosures continued

Embodied carbon

Link to Our Vision 2030

Why is this a focus?

Just over half of our scope 3 emissions relate 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.

Reductions are targeted as part of our scope 3 SBT in

relation to category 1: purchased goods and services.

Link to business model

Designing and planning

new homes and places

Building new homes

andplaces

Link to climate risks

Planning and

designrequirements

Raw material costs

Existing strategic actions for continued implementation

— Undertaking embodied carbon assessments for each

new development during planning and design stages,

enabling our project teams to make more informed

design, specification and sourcing decisions and to take

tangible action to reduce carbon impacts.

— Engaging with manufacturers and suppliers, including

through our detailed supply chain engagement strategy

for high impact materialgroups.

— Playing an active role within several industry groups to

share knowledge and lessons learnt. This includes the

UKGBC and the Future Homes Hub.

Planned strategic actions

— Embed efficient design principles across

ourdevelopments.

— Assess suppliers of key impact materials on their

performance, including carbon reduction targets and

availability of product-specific carbon data.

— Work with suppliers and manufacturers delivering

low carbon solutions.

— Procure lower carbon materials as standard where

there is limited cost impact.

— Encourage and support suppliers in setting SBTs.

Low carbon operations

Link to Our Vision 2030

Why is this a focus?

Emissions related to the energy used during our

construction, sales, office and vehicle fleet activities are

under the direct control of Berkeley and we have the

greatest ability to reduce these.

Reductions are targeted as part of our scopes 1 and 2 SBT.

Link to business model

Building new homes

andplaces

Link to climate risks

Pricing of GHGemissions

Existing strategic actions for continued implementation

— Ensuring 100% of UK electricity has been backed by

Renewable Energy Guarantees of Origin (REGOs)

fromsolar, wind or hydro sources.

— Implementing energy efficiency requirements for our

construction sites, offices and sales suites in line with

ourESOS Action Plan.

— Setting annual energy consumption budgets for

each division that are actively monitored through live

reportingin our online data management system.

— Levying an internal carbon fee on each division, incentivising

low carbon alternatives which may have a greater capital

cost but that deliver reduced operational costs.

— Sharing of best practice initiatives and lessons learnt

through Group committees, working groups, engagement

events and via the intranet.

Planned strategic actions

— Replace traditionally fuelled company vehicles with

hybrid or electric alternatives.

— Enhance focus on out of hours consumption.

— Collaborate with the supply chain to increase the

use of electric or low carbon plant and machinery.

— Increase the use of on-site renewable technology on

long-term construction sites.

— Transition offices and sales suites away from natural

gas use.

Key climate actions of our transition plan

62 | BERKELEY GROUP 2025 ANNUAL REPORT

Low carbon homes

Link to Our Vision 2030

Why is this a focus?

Almost half of our scope 3 emissions relate to the regulated

energy use (such as heating, hot water and lighting) of the

homes that we are creating for ourcustomers.

Reductions are targeted as part of our scope 3 SBT

inrelation to category 11: use of sold products.

Link to business model

Designing and planning

new homes and places

Building new homes

andplaces

Marketing and selling

newhomes

Link to climate risks

Planning and

designrequirements

Substitution of

existingtechnologies

Change in

customerdemands

Existing strategic actions for continued implementation

— Applying a fabric-first design approach, in combination

with the most appropriate technology and infrastructure

solution for each individual development.

— Delivering electric-led heating and hot water systems.

— Engaging with our designers and wider industry through

the UKGBC, Future Homes Hub and the Chartered

Institution of Building Services Engineers (CIBSE) to

understand how to reduce the impact of our buildings.

— Communicating sustainable features to customers

through the sales process, providing accessible and

home-specific information.

Planned strategic actions

— Increase the use of low carbon heating solutions,

such as heat pump technology.

— Analyse as-built performance, monitoring in-use

energy consumption and emissions.

— Improve energy demand management in homes.

Dependencies and challenges

The strategic actions of our transition plan are based on our current understanding of the decarbonisation routes

of our industry. With capabilities across our value chain continually evolving, we will be regularly updating our

planned actions.

Our transition is dependent on:

— The willingness, ability and speed of our supply chain to decarbonise and reduce the embodied carbon

of materials.

— Reforms to the power system including increased renewable energy capacity, in line with Government’s recently

launched Clean Power 2030 Action Plan.

— The rate at which connected industries (e.g. utilities, transport, education and skills) set out detailed transition plans.

— Customer acceptance of low carbon alternatives for heating and powering homes.

— An industry-wide shift to low carbon alternatives and new technologies.

— Workforce behaviour change to reduce avoidable emissions.

Our transition is challenged by:

— A low number of suppliers and contractors that measure their emissions or have SBTs.

— The changing policy and regulatory landscape for housing.

— Lack of capacity in the electricity grid to connect new homes.

— Customer concern over increased costs for electric homes, and behavioural change required to operate

non-traditional heating solutions.

Key | Our Vision 2030 priorities

Customers Quality Communities Climate action Nature

Employee

experience

Modernised

production

Future skills Supply chain Shared value

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 63

Key to milestones:

Low carbon homes

Embodied carbon

Emissions (tCO

Our transition plan

600,000

500,000

400,000

300,000

200,000

100,000

2030

2019

2025

Key actions to date

Procuring biodiesel HVO

and implementing energy

efficiency measures

Applying a fabric-first design

approach, incorporating renewable

technologies and delivering homes

using electric-led heating and hot

water systems

Undertaking design stage embodied

carbon assessments to implement

low carbon design measures and

engaging with suppliers

All completed homes

‘zero carbon ready’

(excluding homes

connected to existing

district heating

systems) by 2030

Post completion

embodied carbon

assessments undertaken

for all new homes

by2030

Carbon intensity of

electricity reduces by

2030 in line with the

UKGovernment’s Clean

Power target

Note: Emissions to date

depicted on a linear basis.

Key to milestones:

Low carbon homes

Embodied carbon

Emissions (tCO

Our transition plan

600,000

500,000

400,000

300,000

200,000

100,000

2030

2019

2025

Key actions to date

Procuring biodiesel HVO

and implementing energy

efficiency measures

Applying a fabric-first design

approach, incorporating renewable

technologies and delivering homes

using electric-led heating and hot

water systems

Undertaking design stage embodied

carbon assessments to implement

low carbon design measures and

engaging with suppliers

All completed homes

‘zero carbon ready’

(excluding homes

connected to existing

district heating

systems) by 2030

Post completion

embodied carbon

assessments undertaken

for all new homes

by2030

Carbon intensity of

electricity reduces by

2030 in line with the

UKGovernment’s Clean

Power target

Note: Emissions to date

depicted on a linear basis.

Climate-related disclosures continued

64 | BERKELEY GROUP 2025 ANNUAL REPORT

2035

Low carbon operations

Low carbon homes

External dependency

Net Zero

Key actions to reach net zero

• Design to lower

embodied carbon

• Work in partnership

with our supply chain

to reduce emissions

• Ensure that all

suppliers provide

product-specific

carbon data

• Transition district

heating to be net

zero ready

• Improve energy

demand management

inhomes

• Expand the use of

low carbon heating

technologies

• Improve energy

efficiency with a focus

on reducing out of

hours usage

• Cease use of natural

gas across our offices

and sales suites

• Increase the use of

electric plant and

company vehicles

• Explore nature-based solutions for carbon capture and storage

2045

2040

Net zero operations

across our sites, offices,

sales suites and vehicle

fleet by 2035

Decarbonised electricity grid

by 2035 in line with Future

Energy Scenarios (FES) 2024

Reduce emissions to

less than 10% of our

baseline year and offset

residual emissions

2035

Low carbon operations

Low carbon homes

External dependency

Net Zero

Key actions to reach net zero

• Design to lower

embodied carbon

• Work in partnership

with our supply chain

to reduce emissions

• Ensure that all

suppliers provide

product-specific

carbon data

• Transition district

heating to be net

zero ready

• Improve energy

demand management

inhomes

• Expand the use of

low carbon heating

technologies

• Improve energy

efficiency with a focus

on reducing out of

hours usage

• Cease use of natural

gas across our offices

and sales suites

• Increase the use of

electric plant and

company vehicles

• Explore nature-based solutions for carbon capture and storage

2045

2040

Net zero operations

across our sites, offices,

sales suites and vehicle

fleet by 2035

Decarbonised electricity grid

by 2035 in line with Future

Energy Scenarios (FES) 2024

Reduce emissions to

less than 10% of our

baseline year and offset

residual emissions

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

Berkeley Group 2025 ANNUAL REPORT | 65

Climate-related disclosures continued

Engagement

Berkeley aims to ensure that our decarbonisation efforts include a fair and equitable ‘just transition’ that identifies

potential effects on our stakeholders.

Collaboration is key to ensuring a just transition and delivering our transition plan, with key activities as follows:

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 (see page 48).

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 including ‘lunch and learn’ sessions

andinternal intranet to share best practice.

Skills availability

to deliver low

carbonhomes

66 | BERKELEY GROUP 2025 ANNUAL REPORT

Berkeley has recognised

climate change as one

of its principal operating

risks since 2018.

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 79).

The Responsible Business

Executive 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 Group’s Risk

Executive and reported on at each

Board meeting, with feedback

provided back down the business

tooperating companies.

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

Strategy tracker identify risks

and monitor action taken to

mitigate these from land purchase

throughto completion.

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.

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.

Risk management

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

Responsible Business Executive 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.

Abbey Barn Park, High Wycombe

Scan the code to read more

about our climate scenario

analysis methodology

02–91 | STRATEGIC REPORT 92–167 | CORPORATE GOVERNANCE 168–237 | FINANCIAL STATEMENTS

BERKELEY GROUP 2025 ANNUAL REPORT | 67

Climate-related disclosures continued

Transition risks and opportunities

This year, climate scenario analysis for transitional risks and opportunities (originally completed in 2022) has been

reviewed with the support of Aon in recognition of the changes that our industry has seen in recent years and

is expected to be exposed to in the near-term (e.g. the Future Homes and Buildings Standards). The aim was

torevisit and validate key risks and opportunities based on a below 2°C orderly transition.

Transition risks and opportunities have been assessed in relation to aggressive climate mitigation measures in

both the short-term (to 2027) and medium-term (to 2030). Berkeley is considered to have higher exposure to

the transition risks and opportunities detailed in the table below, albeit none of these are consideredindividually

material in the context of the Group’s current year financial statements.

Transition risks

Key | Exposure Low Moderate High

Transitional 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 could be particularly affected by proposed

changes. In the short to medium-term, homes on future phases of developments that

are under construction may require a different heating solution from those currently

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.

Berkeley actively engages with government to help shape the direction of future regulation. Further to our submission

to the Future Homes and Buildings Standards consultation in 2024, this year we responded to the Government survey

on solar provision under the Future Homes Standard, including recommendations on the amount that can feasibly be

provided on homes.

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 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.

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

additional electrical loads ahead of the implementation of the Future Homes and Buildings Standards, whilst noting

that there is also a dependency on the national 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. The cost of suppliers

implementing mitigation measures as part of their own transition plans may also be

passed on to customers.

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 80 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

Transitional opportunity description Opportunity 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 under our BTR platform) 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

delivery 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.

68 | BERKELEY GROUP 2025 ANNUAL REPORT

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.