Key workers flock to Gleeson for affordable first home

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

The urban regeneration housebuilder has reported strong demand for its “high quality, low cost” homes.

The firm said its annual results are set to be significantly ahead of current market consensus after it announced a 36 per cent leap in revenue to £143m in the six months to December 31

James Thomson, chief executive of MJ Gleeson, said: “This was a very robust performance reflecting the strong demand – even in difficult times – for the high quality, low cost homes that Gleeson Homes builds for first time buyers, many of whom are key workers.

“This is everyone who is keeping us safe, fed and healthy. So it’s everyone from supermarket workers, lorry drivers, warehouse workers, NHS staff, police officers and teachers.”

He said that many of these key workers are on low to average income, which is Gleeson’s target market.

“Three quarters of our customers are under 35. Their average income is £24,000 and we are really the only listed housebuilder that serves that market. We naturally attract these buyers,” he added.

“We have a key worker priority programme and an Armed Forces programme. They are our core market.

“We have priority releases for up to 48 hours for key workers on a wide selection of sites. We also offer an incentive package of £1,000 so they can personalise their own homes. The most popular upgrades tend to be around kitchens and bathrooms.”

He said key workers are particularly keen to buy homes at Gleeson’s new Leadmills Walk development of two, three and four bedroom homes near Catterick Garrison, located close to the edge of the Yorkshire Dales, providing easy access to beautiful countryside.

Mr Thomson said the new scheme of 40 homes is proving particularly popular with the Armed Forces. Close to the A1, Leadmills Walk is also geared for people commuting to York and Newcastle. Gleeson said the site is very close to picturesque Richmond so there’s plenty to do and see nearby, particularly for those who love the great outdoors.

Mr Thomson said lockdown has definitely increased people’s desire to own their own home.

“Our customers are either living at home with their parents to save a deposit or renting,” he said.

“Lockdown means that getting your own home has become a priority. We build three/four bedroom homes with front gardens and back gardens, off street parking, developed with good open space, away from city centres, but close to transport links and areas of employment.”

Analyst Charlie Campbell at Liberum said: “Demand persists for Gleeson’s low cost homes, with a strong order book giving good visibility.

“Over 60 per cent of Gleeson’s customers are key workers, and all its customers find it cheaper to buy than to rent.”

The average selling price rose 9 per cent to £140,600.

Gleeson said that Government furlough grants of £1.3m were repaid in full on January 28 and the group is resuming dividends with a 5p interim dividend.

Gleeson Homes opened a record 17 sites during the first half and said it enters the second half with a strong forward order book.

It now expects to deliver 1,775 homes in the current financial year.

“The timing of opening sites for sales means that we are comfortably on track to deliver our original target of 2,000 homes next financial year,” said Mr Thomson.

Gleeson Strategic Land has seen strong demand for consented land from both medium and large sized housebuilders and the firm said it has a healthy pipeline of sites, four of which are in a sale process and expected to complete in the second half of the financial year.

“The group is well placed for the future,” said Mr Thomson.

“In the absence of any unforeseen circumstances, the board is confident that results for the full year to 30 June 2021 will be significantly ahead of current market consensus.”

Over the half year, Gleeson Homes saw sales rise 17 per cent to 951 homes.