Telford builds record profits on London housing shortage
The developer is shifting its focus to the capital’s growing rental market.
London-focused housebuilder Telford Homes is celebrating record annual revenues and profit on the back of an acute housing shortage in the capital.
Telford said on Wednesday that its profits for the year to March 31 2018 would beat market expectations, rising by more than 30% year on year.
The housebuilder attributed its success to the under-supplied housing market in London, and its decision to sell homes at relatively affordable price points.
The developer, which has more than 2,900 homes under construction and a pipeline of over 4,000 units, has been shifting its focus to the rental sector, arguing that there is significant support for build-to-rent developments from politicians and investors.
In its trading update, Telford said: “With supply constrained, demand for rental properties remains strong in London, with more people actually choosing to rent rather than it just being their only option.”
Telford has acquired a site in Walthamstow which it is marketing to renters. The scheme, which will comprise more than 250 homes, will be one of the developer’s largest build-to-rent schemes to date.
The Government has voiced its support for build-to-rent homes, saying that to fix the housing crisis the UK must provide more varied forms of accommodation.
In a White Paper published in February last year, Housing Secretary Sajid Javid said he wanted to encourage institutional investors to back build-to-rent developments.
Jon Di-Stefano, chief executive of Telford Homes, said: “As we increase the scale of the business, our growth is underpinned by the lack of supply of new homes in London, and demand for our product at the more affordable price points remains strong.
“Build-to-rent is the most exciting part of our business in the near term and I believe our increased focus on this sector will drive the next phase of our growth and bring even greater success.”