Listed housebuilder reports ‘strong demand’ and 40% rise in reservations
Sheffield-headquartered listed housebuilder MJ Gleeson has seen reservations rise 40% over the last six months, with building activity being driven by strong demand.
Gleeson Homes is expecting to record an increase in completions for the half year to 31 December 2018 of approximately 10% compared with the prior half year total of 593 units; and an increase in completions for the year to 30 June 2019 of more than 15% compared with the prior year total of 1,225 units.
The firm will today hold its AGM in London. Chairman, Dermot Gleeson, will state: “Demand at Gleeson Homes is strong with net reservations up more than 40% over the last six months. Land continues to be available at sensible prices and the pipeline remains strong. Gleeson Homes has a pipeline of 12,490 plots with a gross development value of £1.5bn, of which 7,253 plots are owned and 5,237 are conditionally purchased.
“Build activity has increased in recent months driven by strong demand. The division currently has 62 active sites, compared with 58 at this time last year.”
Gleeson says that the Government’s Help to Buy scheme remains popular with 71% of customers taking advantage of it so far this financial year.
“Very strong customer demand in all regions, good mortgage availability and our ability to offer attractive levels of affordability to our customers, means that the outlook for the division remains very positive,” added Gleeson.
The listed firm’s Gleeson Strategic Land division continues to experience strong demand for consented land. Since the start of the financial year the division has completed the sale of three sites with planning permission for a total of 483 plots and is progressing sale negotiations on a further seven sites.
The division’s land pipeline currently consists of 58 sites which have the potential to deliver approximately 21,789 plots. The portfolio includes nine sites which now have planning permission.
