Gleeson Homes’ sales drop 14%

Gleeson Homes’ sales fell 14% over its half year, according to a trading statement released today (January 9).

Issuing an update covering the six months to December 31 2023, Gleeson, the low-cost housebuilder and land promoter, completed the sale of 769 homes against H1 2022’s 894. This reflected “the weaker conditions experienced across the housing market during 2023”.

Gleeson also expects its full year gross margins to fall “below expectations” by around 1.5% to 2%. This was, it said, thanks to costs from older sites and difficult market conditions including extended site durations, sales incentives and multi-unit sales.

During the half year, net reservation rates were slightly up on 2022, from 0.36 per site per week to 0.41. The Homes division entered its second half with a stronger forward order book than the comparable period, at 586 plots (December 31 2022: 319 plots).

Gleeson said its board anticipated a “seasonally busier selling period” in the coming weeks and months, with stabilising interest rates triggering a renewed interest in low-cost housing.

At the same time, Gleeson is arranging further multi-unit sales, expecting to enter into agreements “over the coming months for delivery of homes in the current and …