In a trading update, the developer said its profit before tax was anticipated to be slightly ahead of current market expectations following a strong performance in the second half of the year.

This was boosted in part by a robust non-prime London housing market, which Telford attributed to an imbalance between supply and demand, particularly at the group’s typical price point.

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Jon Di-Stefano, chief executive of Telford Homes (pictured above), said: “Telford Homes is extremely well positioned to achieve further significant growth, building homes for a chronically undersupplied non-prime London market and increasing its activity in the build-to-rent sector, which earns higher capital returns.”

Telford is now on track to exceed £40m of profit before tax in the year to 31st March 2018 and £50m the following year, having already secured over 80% of anticipated gross profit for the former.

The news follows an increased focus on build-to-rent, with a further two significant transactions of £48.6m and £53.7m announced in the last six months.

Telford’s build-to-rent pipeline now represents 483 homes with a combined contract value of £232m.

Forward sales as of 1st April 2017 remained at around £550m with a development pipeline in excess of £1.3bn, more than four times the revenue expected for the year ended 31st March 2017.

The board anticipates further progress in the build-to-rent sector over the next 12 months.