Gleeson reports 14% decrease in home sales in H2 2023

Housebuilder MJ Gleeson PLC completed the sale of 769 homes during the second half-year of 2023, 14% fewer than the half-year to 31st December 2022, it has revealed in its latest trading update.

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).

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.

Leave a comment