The firm believes this reflects the weaker conditions experienced across the housing market during 2023.

Additional costs relating to several older sites, along with the cumulative impact of current market conditions including extended site durations, sales incentives and multi-unit sales, are now expected to result in full year gross margins falling below expectations by circa 1.5% to 2.0%.

However, Gleeson Homes entered the second half of the financial year with a forward order book of 586 plots (31 December 2022: 319 plots).

•   The Finance Professional Show 2023: The Video
•   Planned spending on new affordable homes in 2024 slashed by 9%
•   Construction sector sees a glimmer of hope going into 2024

Net reservation rates during the half-year period were 0.41 per site per week (half-year to 31 December 2022: 0.36 per site per week).

Gleeson Land completed the sale of one site during the half year to 31 December 2023 (H1 2023: three sites sold) and has recently commenced marketing a further four sites.

Against the backdrop of stabilising interest rates the board anticipates a recovery in demand for low-cost housing in the seasonally busier selling period over the coming weeks and months. 

Gleeson Homes also continues to negotiate further multi-unit sales and expects to enter into agreements over the coming months for delivery of homes in the current and next financial year.