Buyer interest grows for Gleeson

REGENERATION specialist Gleeson has seen a significant growth in buyer interest over the last five months despite continuing issues with mortgage availability, the company said today.

Visitor numbers are up by more than 15%, private completions have grown by 26% and overall unit sales have increased by 47% compared to the same period last year.

Gleeson also said that its selling prices on most of its sites had improved ahead of management expectations.

However, it echoed the concerns of Persimmon earlier in the week on mortgage availability and warned that the number of providers willing to offer high loan-to-value mortgages remains “only a small proportion of what was available prior to the credit crunch”.

Gleeson also warned of the effect of the Government’s proposed changes to the planning system on its strategic land division which, it said, was making it more difficult to secure viable residential planning consents.

But the company hopes its expertise in this area will allow it to capitalise as sites that do gain consent are likely to command a higher premium in future.

In a stock market update, the company said: “The continuing restrictions on mortgage availability and the adverse impact of the Government’s spending review on consumer confidence mean that conditions in the housing market continue to be difficult.

“However, the Board is increasingly confident that the Group’s, rigorous control of construction costs, coupled with a very disciplined approach to land acquisition, is laying down strong foundations for future growth.”