Telford Homes plc is seeing its foray into London build to rent pay off, according to its latest Interim Results.
Total revenue for the six months ended 30 September 2018 increased by 31% to £129.6m while total profit before tax rose by 16.1% to £10.1m compared to the previous year.
The company said that it remains confident in its long term strategy of delivering homes in non-prime locations of the ‘chronically undersupplied London market.’ It added that it’s ‘strategic shift’ towards build to rent over the last three years was ‘well timed’ as this sector is expected to form a significant part of the London market in future.
Jon Di-Stefano, Chief Executive, said: “Our strategic shift towards purpose built rental homes sold to institutional investors continues to be beneficial to our risk profile and growth potential whilst also being well timed in terms of the changing requirements of our typical customers in London.
“We are committed to our strategy which is built upon a fundamental undersupply of homes in non-prime locations in London and our belief that short term market sentiment does not alter the long term structural imbalance between housing supply and housing need.”
Telford Homes is at the forefront of build to rent in London, delivering over 1,750 homes in the sector, and working with a number of institutional partners. The results seem to indicate that the London market is very much alive and well for developers who understand basic market fundamentals.