Telford Homes has revealed a jump in profit for the first half of the year.
The housebuilder reported first-half profits to increase to £10.1 million, an increase of 16%. Total revenue grew by 31% to £129.6 million.
Despite the positive results for the first half of the year, Telford Homes said that as a company it has “work to do” in order to meet the full-year targets amid Brexit uncertainty.
The group is on track to meet full-year profits of £40 million.
“Telford Homes made pleasing progress during the first half of the financial year, despite an increasingly uncertain economic and political backdrop. 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,” said Jon Di-Stefano, the chief executive.
“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. These factors, coupled with our excellent reputation as a trusted build to rent partner and the associated change in our business model, give us the confidence to look forward to more success in future years,” he added.
Telford Homes has been shifting to the build to rent over the past three years and has already built 1,750 homes to rent in this period.
A survey by the Royal Institution of Chartered Surveyors (RICS) has suggested that Brexit is taking a toll on the property market.
Amid Brexit uncertainty, sales are taking longer to complete, house prices are falling and the number of buyers is decreasing.
Simon Rubinsohn, the chief economist at RICS, said: “There are a number of themes running through the comments of respondents this month, but uncertainty relating to Brexit negotiations is at the very top of the list followed by references to the confidential remarks made by the Bank of England governor to the cabinet.”
“All of this is, not surprisingly, taking its toll on the sales market,” he added.
Shares in the group (LON: TEF) are trading +2.17% (1007GMT).