London housing shortage to offset political uncertainty, says Telford Homes
Telford Homes has said London's "chronic" need for new houses should offset mounting political and economic uncertainty as it remains on track for another surge in annual profits.
The group cautioned that it had seen an increase in uncertainty in recent weeks following the General Election, but said it hoped for more "stability in the months ahead".
It added: "Our confidence in delivering continued growth remains unchanged, supported by the chronic need for new homes in London."
The comments come as a report also out on Thursday showed the average number of properties on surveyors' books has hit a new low.
Just over 42 homes were available for sale per branch on average in June, the Royal Institution of Chartered Surveyors (Rics) said.
But Telford is in line for pre-tax profits to jump to more than £40 million for the year to next March and £50 million the following year, with more than 80% of gross profit already secured for the next two years.
This comes after results in May showed a 5.9% rise in pre-tax profits to £34.1 million for the year to March 31 after sales jumped 19% to an all-time high of £291.9 million.
It said it would continue to focus on the lucrative build-to-rent sector, with contracts for nearly 500 homes worth more than £230 million under its belt.
Shares rose 2% on Telford's cheery profit outlook.
But the firm said this year's profit would be "significantly" weighted towards the second half due to the "uneven" timing of sale completions.
It said that while developments are being delivered on track, less than a quarter of its annual open market sales will take place in the first six months.
Telford last month signed a deal with US-based build-to-rent investor firm Greystar to deliver 894 build-to-rent homes at Nine Elms in Battersea.