Strata Homes sees big improvement in housing market

YORKSHIRE-BASED housebuilder has reported a rise in annual sales of more than 200% and a nine fold rise in profits on the back of an improving housing market.

The Doncaster-based company said its future prospects were “encouraging” as the economy emerges from recession as it saw annual sales to December 2013 increase by 217% to £80m.

The group sold 521 homes last year, lifting profit before tax from £1.1m to £9.01m.

Strata chairman Irving Weaver said that the Government’s Help to Buy initiative was a significant factor in promoting the recovery in the housing market.

He said that continuation of the scheme until 2020, together with an improving economy, will enable the company to grow through this cyclical market.

Mr Weaver commented: “The future prospects are encouraging, with a growing land bank, underpinned by a new three year banking agreement with the Royal Bank of Scotland. Our short term land bank estimated gross margin is £70m with a forward development value of £369m.

“There will be a continuous under supply of new housing due to restricted industry capacity and planning constraint. We are well positioned,” he added.