Gleeson reports strong demand for its low-cost homes

The Sheffield-based firm will tell shareholders at its AGM this morning that Government measures ensured it could return to sites safely and securely following the first national lockdown so it can deliver much needed affordable homes.

Dermot Gleeson, chairman, will tell investors: "During the second lockdown all our sites continued to build and sell efficiently within Covid-secure protocols.

"We expect this to continue in the newly established three-tier system of restrictions.

"Demand for Gleeson’s low-cost homes remains strong and selling prices continue to increase. The average selling price on new reservations since the start of the financial year has been 9 per cent higher than in the same period last year."

Mr Gleeson said land continues to be available at sensible prices and the pipeline remains strong. Gleeson Homes has a land pipeline of 13,938 plots with a gross development value of £2.0bn, of which 7,298 plots are owned and 6,640 are conditionally purchased.

The division currently has 80 active build sites, compared with 64 active build sites this time last year. It has opened 11 new build sites since the start of the financial year. It expects to open at least another 14 new build sites before the end of the financial year.

The division currently has 65 active sales sites, similar to the 64 sales sites this time last year, but it expects to be actively selling on all its current build sites before the end of the financial year.

Gleeson Homes is expected to report a more than 15 per cent increase in sales for the half year to December 31.

Mr Gleeson will tell investors: "Record new site openings, strong demand driven by the structural need for low-cost quality homes for first-time buyers and our ability to offer attractive levels of affordability to our customers, mean that the outlook for the division remains very positive.

"As a result, the board now expects Gleeson Homes’ results for the year to exceed current expectations. The board re-affirms its target of delivering 2,000 units per annum in the year to June 2022."