UK's MJ Gleeson flags weaker first half as buyers await homebuyer scheme

MJ Gleeson Sees Weaker First Half as UK Buyers Await Homebuyer Scheme

Company Outlook and Market Conditions

First Half Expectations and Buyer Behavior

Nov 6 (Reuters) - British homebuilder MJ Gleeson on Friday said it expected a weaker first half of fiscal 2027, warning that cancellations and delayed purchases from first-time buyers were likely to increase in the run-up to the launch of the upcoming "Your First Home" scheme in April.

Reservation Rates and Sales Trends

• Open-market net reservation rates in the eight weeks to November 1 were 0.53 per site per week, little changed from the prior year, as sales remain subdued despite recovering from a weak summer

Profit Outlook and Market Consensus

• The company said profits would be heavily weighted to the second half, with delivery of full-year market consensus reliant on improving buyer confidence

"Your First Home" Scheme Impact

Scheme Details and Challenges

• The scheme, aimed at helping cash-strapped buyers onto the property ladder, has fallen short due to limited funding, a delayed rollout and higher-than-expected fees for developers

Potential for Increased Cancellations

• MJ Gleeson cautioned the gap before the scheme's launch could increase cancellations, with the pace of any recovery dependent on the scheme's timely introduction

Land Business Update

Progress on Land Sales

• In its land business, the company said it was close to completing a delayed large land sale, but warned of a lack of visibility on the timing of disposals

Reporting and Editorial Credits

(Reporting by Ankita Bora in Bengaluru; Editing by Nivedita Bhattacharjee)