MJ Gleeson to beat forecasts as house prices rise in buoyant market
MJ Gleeson PLC (LON:GLE), the housebuilder, says results for the year ending 30 June 2021 will be ahead of market expectations.
Strong demand for new homes has led to higher selling prices, which has more than offset recent increases in certain material costs, the builder said.
Demand for high-quality consented land from large and medium-sized housebuilders has also returned to pre-Covid levels, the statement added.
The builder had already raised its guidance at the halfway point of the year when it reported interim profits jumped by 53% to £20.3mln, with the company saying its average selling price had risen by 9% to £140,600.
MJ Gleeson focuses on low-cost houses and strategic land purchases, which it then sells to other housebuilders.
Over 60% of Gleeson’s customers are key workers, and all its customers find it cheaper to buy than to rent, according to broker Liberum.