- Further pressures on Government’s target to build 1.5m new homes
Housebuilder MJ Gleeson has warned ‘more needs to be done’ on planning rules to ensure the Government can hit its ambitious new home targets.
Boss Graham Prothero told investors on Tuesday it has been a ‘challenging’ year with the firm’s momentum ‘stalled’ by higher build costs and a slower-than-expected recovery in housing demand.
The Sheffield-based group, whose shares are down by around a third this year, has also blamed capacity issues in the planning system for delayed site openings.
Gleeson Homes, which saw a leadership overhaul this summer, sold 1,793 homes in the year to 30 June, up from 1,772 in 2024, as average selling prices increased by 4.3 per cent to £193,600.
The group wants to eventually build 3,000 new homes per year – a target it says will triple profitability.
Gleeson welcomed recent Government changes to the planning system, but said on Tuesday ‘more needs to be done to increase the efficiency and consistency of the planning and regulatory systems in order to expedite the provision of much-needed new homes’.
The group wants to eventually build 3,000 new homes per year – a target it says will triple profitability.
It added: ‘For Gleeson Homes, this reinforces our view of the importance of building on brownfield land and the provision of affordable homes.
For Gleeson Land, its land promotion business, the group said reforms ‘should help secure planning where there is a mandatory housing requirement and satisfy the growing demand from other developers for high-quality consented land’.
It comes as the rate of new homes built by rivals housebuilders have also disappointed, piling further pressure on the Government’s target of 1.5 million new homes within this parliament – or 300,000 per year.
Industry figures also say speculation on new taxes on property in the upcoming budget have done little to help more recently.
MJ Gleeson posted revenue growth of 6 per cent to £366million for the year, while pre-tax profits were down 12 per cent but in line with expectations at £21.9million. The group maintained its divided at 11p.
Prothero said: ‘This year has been challenging for Gleeson, and despite selling more homes relative to FY2024, there have been factors which stalled our momentum.
‘We have taken the actions necessary to benefit the business through FY2026 and ensure the delivery of our strategic objectives.’
MJ Gleeson shares were up 2.9 per cent to 351p. They are down roughly 30 per cent since the start of the year.
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .