Telford Homes (LON:TEF) has said it expects to achieve record profits this year, partly due to London’s housing shortage.
The company said it expected pre-tax profits to rise by almost a third in the year to the end of March, despite a generally weak housing market across the capital.
Despite this, Mr Telford said London’s undersupplied housing market had “remained strong” throughout the period, dispelling concerns.
So far, the company has sold more than 100 homes in the second phase of Stratford’s New Garden Quarter, with initial interest in the project exceeding expectations.
The company attributed its strong performance to “London’s strong housing market, supported by a wide range of build-to-let, private investor, owner-occupier and housing association sales formats”.
John DiStefano, Chief Executive Officer of Telford Homes, said:
“Telford Homes continues to deliver a strong performance and we expect to report record revenues and profits for the year to 31 March 2018.”
“As we scale, our growth is underpinned by the lack of supply of new homes in London, and demand for our more affordable products remains strong.”
“Build-to-rent is the most exciting part of our business in the short term and we believe that increasing our focus on this area will drive the next phase of our growth and deliver even greater success. ” he added.
The group currently has just over 2,900 homes under construction, but said it was looking to “significantly increase” this number in the future.
Telford’s optimistic results contrast with generally subdued figures for London’s housing market, with demand falling for 11 consecutive months, according to the latest UK Housing Survey by RICS.
Additionally, the capital continues to be affected by economic uncertainty and stamp duty increases, with prices falling more than 15% in the past 12 months.
Telford Homes’ share price is trading at +1.65 at 9:31 a.m. (GMT).
