MJ Gleeson Sees Reservation Rates Rise Amid Subdued Housing Demand

MJ Gleeson (LON: GLE), the low-cost housebuilder and land promoter, provided a trading update at its Annual General Meeting, revealing a mixed landscape of progress and persistent challenges.

While reservation rates have improved, the broader housing market remains subdued, reflecting a lack of buyer confidence in the current economic climate.

Gleeson Homes reported an increase in open market net reservation rates for the eight weeks leading up to November 7, 2025. Rates climbed by 22% to 0.50 per site per week, or 0.92 including bulk reservations, compared to 0.41 (0.46 including bulk) during the same period last year.

The company has opened six new build sites since the start of the 2026 financial year, mirroring the number opened during the same period last year. However, the number of sites where sales have commenced decreased slightly, from seven to five.

Gleeson Homes is currently selling on 59 sites, down from 64 at the end of October 2024. Resource constraints within local planning departments continue to pose an obstacle to the timely opening of new sites, hindering further expansion.

Gleeson Land is progressing with its growth strategy, having completed the sale of two small sites since the start of the financial year. A larger site, representing approximately 50% of the total plots budgeted for sale this year, is contingent on the finalization of a technical solution.

The division is on track to submit 18 planning applications in the first half of the financial year, aligning with its growth objectives.

The Board anticipates that the results for the financial year ending June 30, 2026, will align with current market expectations, though mindful of the potential impact of the Government's Autumn Budget announcement on November 26, 2025.

A trading update for the six months to December 31, 2025, is scheduled for release on January 16, 2026, with the results for the period to follow on February 11, 2026.