Sunday 24 September 2017

Building affordable homes pays dividends for MJ Gleeson

MJ Gleeson has set a target of doubling construction to 2,000 homes a year within five years.

The move comes as the firm unveiled a strong set of results thanks to its strategy of building affordable homes in the north of England and selling land in the south.

Gleeson sold 1,013 homes during the year to June 30 – up from 904 last time as pre-tax profits rose to £33m from £28,2m on turnover up to £160.4m from £142.1m.

Chairman Dermot Gleeson said: “Our twin track strategy – the development of low cost homes for open market sale in the North of England and strategic land sales in the South – delivered another excellent year of increased volumes, margins, profit and cash.

“Gleeson Homes achieved its milestone target of 1,000 unit sales per annum and has set a new milestone target of 2,000 unit sales per annum within the next 5 years.

“Affordability remains very attractive and demand exceeds supply, with buyers queueing on site opening days.”

The average selling price last year was £122.700.

Gleeson added: “There has been a great deal of media comment about the difficulties young people face purchasing a home, but typical Gleeson Homes buyers are blue collar workers aged between 18 and 33. 

“Our chosen segment of the market is large, mostly untapped and not really affected by the vagaries of politics or the general economy.

“This is because the outgoings relating to the purchase of one of our homes are significantly less than renting a council or housing association house.”



from Construction Enquirer http://www.constructionenquirer.com/2017/09/25/building-affordable-homes-pays-dividends-for-mj-gleeson/

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