Demand at the ‘more affordable’ end of London’s housing market has helped housebuilder Telford Homes boost its sales and profits.
In the last year, the London-focused developer enjoyed record revenues of £316.2million, up from £291.9million a year earlier.
Profits rose by 35 per cent to £46million, with the group claiming interest from build to rent investors, from both the UK and overseas, remained strong.
Growth: Demand at the ‘more affordable’ end of London’s housing market has helped housebuilder Telford Homes boost its sales and profits
Telford’s typical properties in London are priced at around £539,000, compared to £527,000 a year earlier.
The group said it was seeing growing investment from China due to the ‘continued international attraction of London, despite Brexit’.
In January, Telford launched the second phase of its ‘New Garden Quarter’ development in Stratford.
In three weeks the group received 100 reservations. A quarter were from British buyers, while the rest came from investors in Hong Kong and China.
In its latest results, Telford said it was well placed to top £50million in pre-tax profit next year, which would represent a 100 per cent increase over four years.
The company’s share price is down 2.07 per cent or 9.50p to 449.00p.
The group’s total dividend for the year is 17p per share, marking an increase of just over 8 per cent from last year’s figure of 15.7p a share.
Telford Homes said it had been operating within a ‘robust’ London market, with strong demand from ‘build to rent investors, individual investors, owner-occupiers and housing associations’.
The developer, which has a pipeline of more than 4,000 units, has been shifting its focus to the rental sector, claiming there is significant support for build-to-rent developments among politicians and investors.
Data published by the Office for National Statistics earlier this month revealed that average property prices in London have fallen by 0.7 per cent in the last year, marking the poorest growth since September 2009.
Results: In the last year, the London-focused developer enjoyed record revenues of £316.2million, up from £291.9million a year earlier
Jon Di-Stefano, Telford Home’s chief executive, said: ‘Telford Homes continues to perform well and I am delighted to report such a strong set of results which again have produced record levels of revenue and profit.’
He added: ‘As we increase the scale of the business, our growth is underpinned by the under supply of new homes in London and robust demand at more affordable price points, particularly for rental housing.
‘Our substantial development pipeline and increasing expertise in the burgeoning build-to-rent sector provide us with confidence for the future.’
Shifting focus: The developer, which has a pipeline of more than 4,000 units, has been shifting its focus to the rental sector