In a market update, the housebuilder pointed to recent geopolitical events and macroeconomic consequences (including further rate cuts) as impacting its outlook.

As such, management at the company believe it can no longer make the required rate of return on new land acquisitions.

“This is due to the continuous increase in the tax and regulatory burden on residential development, which other land uses do not experience, allowing them to pay higher land values,” read Berkeley’s statement.

“Where residential transactions have been taking place, land prices have been overheated.

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“Berkeley is therefore not proposing to acquire new land while these conditions prevail, except through joint venture arrangements, and will focus on its existing land holdings.”

Part of this change in strategy will see Berkeley target an operating margin of 17.5% to 19.5% through both the maintenance of development margins and further real reductions in operating costs.

Elsewhere, the housebuilder will focus on adding £2bn of value to its current land holdings which comprise over 50,000 homes.

“While it remains on track to hit targets, the move to reduce investment and halt new land acquisition is a sign of a company pulling up the drawbridge to await better times,” commented Chris Beauchamp, chief analyst at IG.

“While sensible, it has given investors a new reason to abandon the shares, sending them to a decade low in early trading."