Homebuilder reports rise in plots and says land remains at “sensible prices”

Homebuilder MJ Gleeson has an order book 30% ahead of last year in its Gleeson Homes division, with a pipeline of more than 11,500 plots which have a gross development value of £1.4bn. 

The Sheffield based firm, which has a Gleeson Homes division and a Gleeson strategic land division, will today hold its AGM, when chairman, Dermot Gleeson, will report that demand remains strong. 

Gleeson said: “Land remains available at sensible prices and the pipeline remains strong. Gleeson Homes has a pipeline of 11,529 plots with a gross development value of £1.4 billion, of which 5,582 plots are owned and 5,947 are conditionally purchased.

“The division currently has 58 active sites, compared with 50 at this time last year and we expect the number of active sites to be approaching 70 by June 2018.”

He said that the Government’s Help to Buy scheme remains popular with 63% of customers taking advantage of it so far this year.

Gleeson added: “The Board expects Gleeson Homes to record an increase in completions for the first half year to 31 December 2017 of more than 15% compared with the prior half year total of 451 units; and for the year to 30 June 2018 of approximately 20% compared with the prior year total of 1,013 units.

“Gleeson Strategic Land continues to experience strong demand for consented land in the first five months of the current financial year, completing the sale of two sites with planning permission for 50 plots and a 60-bed care home and is progressing sale negotiations on a further 10 sites.

“The division’s land pipeline currently consists of 63 sites which have the potential to deliver approximately 21,455 plots. The portfolio includes 12 sites with planning permission.

“We expect Gleeson Strategic Land results for the full year June 2018 to be broadly in line with results for the prior financial year. Due to the timing of a site sale the division’s results for the first half of the year may fall below those of the prior year. In this event, the second half is likely to be significantly stronger than the first.”