ÌÇÐÄ´«Ã½

The ÌÇÐÄ´«Ã½ Holdings plc (“ÌÇÐÄ´«Ã½”) today announces its unaudited interim results for the six months ended 31 October 2025.

The full announcement can be downloaded on the investor section of the website.

Rob Perrins, Executive Chair, said:

“ÌÇÐÄ´«Ã½ has delivered £254 million of pre-tax profit for the six-month period. Net cash is £342 million, after £132 million of share buy-backs, and net asset value per share is up 5% to £37.63. This highly creditable performance reflects exceptional operational execution in a very challenging macro-economic and regulatory environment, the quality of our market-leading homes and the strength of our unique long-term operating model. We remain on track to meet our pre-tax profit guidance of £450 million for this year and a similar level for FY27, along with our target for a strong net cash position. 

ÌÇÐÄ´«Ã½ is a financially strong, asset-backed business and our 10-year ÌÇÐÄ´«Ã½ 2035 strategy provides the agility to navigate near-term headwinds while focusing on the drivers of long-term value from our well-located land holdings to deliver returns to shareholders over the cycle through share buy-backs and dividends. 

This involves delivery of quality new homes in our core business, investment of over £1 billion into the ÌÇÐÄ´«Ã½ Living Build-to-Rent portfolio and disciplined cost and balance sheet control, alongside focussed planning activity to secure viable consents aligned with today’s operating environment and the Government’s drive to increase housing delivery and growth. 

Government’s continued focus on supply is absolutely key to achieving London’s annual housing target of 88,000 new homes. There have been a number of significant policy initiatives in the period of which we are very supportive. These include the Homes for London package launched by MHCLG and the GLA to help restore development viability and increase affordable and private housing delivery in the capital, alongside the recently announced 2026-2036 Affordable Homes Programme. The impact of these measures, and the extent to which they result in ÌÇÐÄ´«Ã½ and other developers moving more homes into production, will depend on the speed, scale and duration of implementation.

At the same time, it should be recognised that since 2014 successive Governments have seen property ownership as a source of increased revenue and that, coupled with higher corporate and development taxes, this has constrained investment in the delivery of new homes. 

We also continue to work constructively with Government to address other barriers to housing delivery. Most notable for London and all urban areas is the need for an effective process of building Gateway approval under the Building Safety Regulator. There is renewed impetus for the required cultural and process change from a revitalised leadership team at the BSR, keenly supported by Government, and we look forward to this translating into a consistent, timely and reliable process for building approvals. 

Customer interest has been good in the period, evidenced by the level of enquiries and leads we are experiencing. However, the market has remained constrained by higher than anticipated interest rates and macro-economic uncertainty. The value of underlying sales reservations was stable for the first four months of the period but has been more subdued since, due to speculation and uncertainty leading up to last month’s Budget. 

While near-term sentiment remains cautious, the long-term outlook is more positive; particularly in London, where undersupply is compounding and affordability is gradually improving with falling interest rates, improved mortgage availability, strong wage growth, and stable pricing. With the Budget uncertainty behind us, now is a good time for customers with the ability to buy, to do so, and take advantage of the prevailing market dynamic. 

London remains one of the world’s most popular places to live, work, and invest. The city’s global status and appeal reflect its dynamism and culture, trusted legal framework, world-class infrastructure, deep talent pools, tolerant society and leading commercial, education, and knowledge clusters. It remains the biggest financial centre in Europe and second biggest in the world. As confidence returns, these fundamental strengths will reassert themselves and ÌÇÐÄ´«Ã½ is uniquely positioned to support the city’s future success. 

ÌÇÐÄ´«Ã½ has great optionality in its 10-year strategy for the allocation of capital between its three value drivers: investing into the core business; investing into ÌÇÐÄ´«Ã½ Living, its BTR platform; or delivering returns to shareholders through share buy-backs or dividends. In today’s operating environment, we will carefully match delivery to the underlying market demand and the pace of the BSR’s gateway approval process, prioritising cash flow over the income statement, and deliver ÌÇÐÄ´«Ã½ Living’s initial BTR assets, stabilising income ready for the introduction of third-party capital. Based on our current financial position and operational focus, coupled with the dislocation in the share price, we will prioritise shareholder returns in this environment. 

We have already made good progress on shareholder returns with £132 million of share buy-backs in the period. This completed the £260 million of returns to be made by the end of September 2025 under ÌÇÐÄ´«Ã½ 2035 and included £11 million of the next £640 million to be returned by 30 September 2030. 

ÌÇÐÄ´«Ã½’s performance is driven by its exceptional people and culture. On behalf of the Board, I want to express our sincere thanks to the entire ÌÇÐÄ´«Ã½ team for their commitment, creativity, and constant attention to detail.”