House prices with MJ Gleeson soar by 12 per cent

The average selling price of new homes with Sheffield-based MJ Gleeson is 12 per cent higher than last year, the firm has reported.

The property developer said it had a land pipeline of 15,384 plots with a value of £2.4bn, alongside 82 active build sites.

However the firm continues to endure shortages of both labour and materials.

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MJ Gleeson is seeing strong demand.

At its AGM, Gleeson's chairman Dermot Gleeson will make the following comments: “I am pleased to report that despite the widely reported challenges faced by the house building industry, including supply issues, increases in material & labour costs and planning delays, the business is performing well and the Board expects to deliver a result for the current year in line with market expectations.

"Demand for Gleeson’s low-cost homes remains strong and selling prices continue to increase, as planned. The average selling price on new reservations since the start of the financial year was 12% higher than in the same period last year.

"Whilst the construction sector continues to experience availability and cost pressures with respect to labour and materials, Gleeson Homes has worked closely with its suppliers and subcontractors and has been able to continue building on all its sites.

"Land continues to be available at sensible prices and the pipeline remains strong. Gleeson Homes has a land pipeline of 15,384 plots with a gross development value of £2.4 billion, of which 7,961 plots are owned and 7,423 are conditionally purchased.

"The division currently has 82 active build sites, compared with 80 active build sites this time last year and is actively selling on 60 sites, compared with 65 sites this time last year. As a result of continued congestion in the planning system, not least as a result of a shortage of staff in council planning departments, there have been some delays to site acquisitions and site starts. With an improvement in the planning process we expect to acquire and open a total of 25 sites during the year to June 2022.

"We expect Gleeson Homes to complete the sale of approximately 900 homes in the half year to 31 December 2021 and not less than 2,000 homes in the full year to 30 June 2022."