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Housebuilder Blames Planners for Slowdown
16 Jan
Summary
- Under-resourced council planning departments hinder new home site openings.
- Buyer demand was subdued due to economic concerns and budget rumors.
- Interest rate cuts offer improved outlook for spring selling season.
Housebuilder MJ Gleeson has identified under-resourced council planning departments as a significant obstacle to building more homes. Despite government vows to simplify the planning system, the company stated that "resource-constrained local planning continues to impede progress on opening new sites." In the six months ending December 31, MJ Gleeson opened nine new build sites, a decrease from the previous year.
Buyer confidence was impacted by economic conditions and speculative commentary surrounding the Autumn Budget, including potential changes to stamp duty and capital gains tax. Although these rumors did not fully materialize, a mansion tax on homes over £2 million was introduced. Despite these headwinds, MJ Gleeson sold 848 homes, a 6% increase year-on-year, with a forward order book of 978 plots.
The Bank of England's December rate cut has improved the outlook for the current year, with expectations of better open market sales through the spring. MJ Gleeson is implementing further restructuring to optimize overheads and operational efficiency. The company remains confident in its full-year forecast and strategic objectives, anticipating significant growth opportunities ahead.
