Housebuilder MJ Gleeson has reported an increase in home sales and revenue despite a sharp drop in profits, reflecting ongoing challenges in the UK housing market.
For the six months ending December 31, the Sheffield-based firm generated over £150 million in revenue, a 10% increase from the same period the previous year. However, pre-tax profit fell by half to £3.6 million. The company’s land division did not complete any transactions during the period but expects to finalise several deals in the coming months. It also noted that recent government planning reforms are beginning to have a positive impact.
The broader housebuilding sector has struggled with weaker demand due to high interest rates and economic uncertainty. Gleeson completed 801 home sales in the second half of 2024, up from 769 a year earlier. The company also recorded higher net reservations per site and a 4.8% rise in average selling prices, reaching £193,900.
Despite the increase in sales, profit margins took a hit due to incentives offered to buyers. Looking ahead, the company remains optimistic about a market recovery, citing strong demand in the affordable housing segment.
