MJ Gleeson plc (LSE:GLE) has warned that profits for the financial year ending June 2027 are expected to be significantly weighted towards the second half, as subdued housing demand and uncertainty surrounding land sales continue to affect trading.
In an update ahead of its Annual General Meeting, the affordable housebuilder said sales rates had improved from the weak summer period but remained relatively low, with buyer confidence continuing to influence purchasing decisions.
The company also highlighted the potential impact of the Government’s forthcoming Your First Home (YFH) scheme, which could support demand among first-time buyers but may delay purchases ahead of its introduction.
Housing Reservations Remain Subdued
Gleeson Homes reported an open-market net reservation rate of 0.53 per site per week during the eight weeks ended November 1, 2026, compared with 0.52 in the corresponding period last year.
Including bulk reservations, the rate was 0.88 per site per week, down from 0.93 a year earlier.
The company welcomed the Government’s Your First Home initiative, which is intended to help buyers access affordable new-build properties.
However, Gleeson cautioned that announcing the scheme approximately five months before its planned launch could encourage prospective buyers to postpone purchases, potentially increasing cancellations in the intervening period.
As a result, the group expects a weaker first-half performance, with the extent of any recovery during the second half increasingly dependent on the scheme’s timely implementation.
Gleeson Land Progresses Delayed Sale and Planning Applications
Gleeson Land reported further progress towards completing a previously delayed significant land transaction.
The division said most outstanding technical approval matters had been resolved, with the exercise of the sale option and subsequent completion expected within the next few months.
Interest in sites being marketed remained positive, although prospective buyers continued to exercise caution.
The business also secured planning permission for three sites during the period.
Nevertheless, Gleeson reported continued difficulties with planning committee decisions following changes in local political control after this year’s elections, resulting in more applications requiring appeals.
The company maintained a positive medium-term outlook for its land promotion activities but acknowledged limited visibility over the timing of future disposals.
Full-Year Expectations Depend on Buyer Confidence
MJ Gleeson said it was maintaining a cautious approach to working capital management and new site acquisitions while focusing on operational efficiency.
The board expects profitability for the 2027 financial year to be heavily concentrated in the second half, reflecting the anticipated timing of the YFH scheme and uncertainty surrounding land sale completions.
Achieving current market consensus forecasts will depend on further improvements in buyer confidence and the timing of transactions within Gleeson Land.
Despite the near-term challenges, the group continues to see potential benefits from government measures aimed at supporting first-time buyers and remains positive about its medium-term prospects.
MJ Gleeson is scheduled to publish its trading update for the six months ending December 31, 2026, on January 15, 2027, followed by interim financial results on February 23, 2027.
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