Housebuilder achieves strategic objective
Low cost housebuilder MJ Gleeson says in the 2022 financial year ending 30 June 2022 it “delivered its medium-term strategic objective” to double the volume of houses sold within five years, achieving 2,000 home sales through the year.
The success follows an increase of almost a quarter in homes sales (24%) during the second half of the year when compared with the same period in 2021. It means the Sheffield-based business expects its results for the full year to be “significantly ahead of market expectations”.
The increased number of sales at what the company described as a “strong selling price”, with the average selling price up to £167,300, was enough to offset increased material and labour costs.
Looking ahead the housebuilding arm of the business expects the success to continue as a result of “strong first time buyer demand” which has been “intensified by the acute shortage of new homes”.
The business which also operates a land promotion division – Gleeson Land – noted that it had sold six sites over the which could cumulatively deliver 1,443 new homes. However it did warn that “ongoing difficulties in the planning system” were delaying the progress of viable sites, with 16 sites currently awaiting approval.
In total the business has 71 sites within its portfolio with the potential to deliver 20,241 plots, and 25 acres of commercial land.
James Thomson, chief executive officer, at Gleeson who will step down from the role in December said: “This is a very strong out-turn for the year. I am particularly delighted that, by completing the sale of 2,000 homes during the year, we delivered on our strategic objective of doubling home sales within five years, meaning that we have been able to supply more affordable housing to those that need it most.
“We have started the new financial year in a strong position. Notwithstanding the ongoing congestion in the planning system and the wider macro-economic environment, the Board believes that the scale of pent-up demand for low-cost homes will continue to drive significant growth into 2023 and beyond.”
