Gleeson sees “lack of conviction” in Autumn market

Gleeson Homes saw its net reservation rates improve between July and November, although its trading update reflected continuing difficult conditions.

During the period from July 1 to November 1 2024, the low-cost housebuilder’s reservation rates were 0.56 per site per week, against the 0.45 of the equivalent period last year. But it said that a “lack of conviction” in the market had continued into the Autumn as anticipated.

Gleeson pointed to last week’s interest rate cut as a means to “bolster buyer confidence into the important Spring selling season”.

In its statement, it said it was continuing to experience pressure on its margins due to increased build costs, its use of higher sales incentives, the effect of multi-unit sales and “limited relief from increasing selling prices”.

At the same time, the business has begun its programme of new site openings; in the current financial year it has opened seven new sales sites. The homes division anticipates opening 27 sales sites during the year compared to last year’s four, but overall will sell on fewer sites than last year.

“Gleeson Homes will continue the positive momentum of site openings from FY2026, targeting a net ten new sales sites …