Housebuilder Telford Homes said the Conservatives’ majority election win would boost confidence in the property market as it reported annual profits up by nearly a third thanks to soaring demand.
The group, which is focused on the London residential market, cheered the “certainty and stability” the general election result had provided.
Its pre-tax profits leapt 31% higher to £25.1 million for the year to March 31 as it said demand was outstripping supply amid a “chronic shortage” of new, more affordable homes in inner London.
The group said it expects further “significant” growth in profits over the next few years.
Jon Di-Stefano, chief executive of Telford Homes, added: “The outcome of the general election has provided certainty and stability to the political environment and the housing market.
“The new government has a clear understanding of the need to build more homes and any concerns over the impact of housing policies proposed by other political parties have now been removed.”
Telford has been sheltered from the cooling-off seen in the prime London housing market, with the group focused more on relatively affordable properties in inner locations.
It said the average price of homes sold on the open market stood at £459,000 in the year to March 31, up from £400,000 the year before, with “controlled and steady growth” in prices.
Its developments are priced at less than £1,000 per square foot on average, with only a small number of properties priced above £1 million.
Telford said its forward property sales were up 61% to £550 million for the financial year, adding it was 95% sold for the year to March 2016.
It built 661 homes over the last financial year, up from 515 the previous year and said it had already sold 105 since the end of March.
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