Developer says housebuilding market showing signs of improvement
Henry Boot has said pre-tax profit is in line with expectations despite ongoing concerns over planning delays.
In a trading update this morning, the housing and property developer said profit was hitting analysts’ expectations at around £37.8m for the year to date.
The firm, which turned over £340m last year, said its Stonebridge Homes housebuilding arm has secured 71% of its delivery target for the year of 250 homes with mortgage rate affordability and product availability improving.
Henry Boot said its land business Hallam Land Management (HLM) “began the year well” selling 1,900 plots.
“Following a pause from buying land at the end of 2022, there are signs of housebuilders returning to the market, with selective acquisitions and encouraging levels of interest in HLM’s portfolio of prime plots”, it said.
It said HLM’s land bank is stable at 95,478 plots, although 12,288 of these are awaiting planning permission.
But it warned: “Unfortunately, delays within the UK planning system continue, with the business achieving planning permission on 379 plots. Whilst this is frustrating, it does mean our 7,910 plots with planning will be in demand.”
The firm is due to announce its interim results on 19 September.
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