Gleeson reports record trading as the nation's key workers flock to buy value for money homes

Urban regeneration housebuilder MJ Gleeson has reported record annual trading despite industry wide headwinds and said it is now trading above pre-Covid levels.
Over 60 per cent of Gleeson’s buyers are key workersOver 60 per cent of Gleeson’s buyers are key workers
Over 60 per cent of Gleeson’s buyers are key workers

Urban regeneration housebuilder MJ Gleeson has reported record annual trading despite industry wide headwinds and said it is now trading above pre-Covid levels.

The Sheffield-based firm said its Gleeson Homes division saw volumes rise 69 per cent to 1,812 homes sold, which was up from 1,072 homes in 2020 and 1,529 homes in 2019.

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The nation’s key workers are flocking to buy Gleeson homes after the firm put nurses, police, teachers, supermarket workers and lorry drivers at the front of the queue with early release dates and kitchen and bathroom upgrades.

Over 60 per cent of Gleeson’s buyers are key workers and the firm said it is keen to recognise their contribution to the UK during the pandemic.

Gleeson's chief executive, James Thomson, said: "We build two, three, four bedroom homes, traditional two storey-homes. What's really important is that they are low density schemes, with open space with their own back garden, their own front garden, off street parking and our homes are larger and cheaper per square foot.

"People are thinking about what they want from their home in a post-Covid world.

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"We are right in that sweet spot. We are not city centre, we're not apartments, we are close to areas of employment with good transport links. Importantly with that space to work from home. We are building absolutely what people want in the current environment and really importantly, we're making it really affordable for people."

The firm said it is on track to deliver 2,000 homes sold in the year to June 30.

Mr Thomson said: "Many of our customers are living in a box room in their parents' homes and that's fine when they're going into an office or their workplace every day, but through lockdown, they've had additional pressures.

"Covid has accelerated the trends."

Operating profit rose 316 per cent to £37m and 27 new sites opened over the year.

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The Gleeson Land division completed eight land sales during the year, up from two in 2020. The division expects demand to remain strong.

The firm's chairman, Dermot Gleeson, said: “These are an excellent set of results. Our profits, revenue and volumes all exceeded pre-Covid levels, which represents a record performance for the group.

"This was achieved thanks to the resilience of our business model and the talent within the business. Our strategy of building low-cost, high-quality homes in the North of England and the Midlands and unlocking value by promoting land through the planning system in the South of England, ensured the business recovered strongly through what was a tough year."

Mr Gleeson said the firm is managing industry wide supply chain pressures well and it remains confident of delivering Gleeson Homes’ interim target of 2,000 homes sold in the current financial year.

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He added: "Demand remains robust, we have a growing pipeline of sites, an experienced management team and a strong platform for continued growth.

"We continue to operate in a market underserved by other housebuilders, and as a result our homes are as needed and in demand as ever.

"The market for consented sites has recovered and Gleeson Land’s pipeline continues to grow. The division’s experienced management team remains focused on delivering sites with sustainable and implementable residential planning permission to other developers in the South of England and is well placed to drive sustainable growth over the medium term.

"Against this background, the board is cautiously confident that the group will deliver significant growth in both revenue and profits in the current year and beyond.”

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