MJ Gleeson’s sales have dropped despite its hopes that low-cost homes would benefit from rising interest rates.
Gleeson Homes said it completed the sale of 1,723 homes in the year ended 30 June 2023, down by almost 14% from 2,000 in the previous year.
During the second half of the year, 829 homes were sold, down from 1,068 for the same period the previous year.
Gleeson said the fall was “reflecting the downturn in the wider economy and the immediate impact on buyer confidence as a result of higher interest rates”.
The average selling price of Gleeson homes sold during the year increased by 11.3% to £186,200.
Chief executive Graham Prothero said: “We are pleased with the year’s performance in a challenging economic environment. We have taken advantage of the quieter market to restructure Gleeson Homes, putting the business in great shape to grow as the market recovers.
“We are also very excited about the longer-term prospects for the business and look forward to setting out later today why we believe that Gleeson is well-placed to scale significantly over the long-term, realising its true potential.”
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