Help to Buy continues to fuel growth at housebuilder Gleeson

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Housebuilder MJ Gleeson expects property completions to climb 30 per cent to 730 this year, after a strong start to 2015.

The firm, which specializes in urban regeneration and affordable housing, said reserved, contracted and completed homes were up 12 per cent in the four months to April 30.

Help to Buy continued to drive demand at its housing division, with 42 per cent of purchasers using the Government scheme to buy their home.

Gleeson Homes currently has 41 active sites, compared with 37 at the same stage this year. It is also in discussions for a further 13 sites, taking its regeneration land pipeline to 1,855 plots.

The group’s Strategic Land division, which acquires development sites predominantly in the South of England to sell to developers, also performed in line with expectations in the period. It sold a 28-acre site with planning permission for 180 plots earlier in the year.

Of its 68-site portfolio, 12 sites have planning permission. The board is hopeful some of these will be sold by the end of the financial year on June 30, it said.

The group said the board “remains confident that there will be further substantial improvements in the Group’s trading performance in both the current year and beyond”.

It added: “The Group’s underlying profit for the full year, excluding the write down in investments and the cost of the restructuring successfully completed in December 2014, is expected to be in line with current expectations and could exceed expectations, subject to the timing of any additional Strategic Land sales.”