Shares in Telford Homes (TEF) fell as much as 10 per cent after the east-London-focused housebuilder indicated that selling apartments for over £600,000 has become more of a challenge, as potential buyers react to Brexit uncertainty.
Sales of apartments costing under £600,000 have remained consistent, with average selling prices of £540,000. But in order to reach its target of exceeding pre-tax profits of £50m in the year to March 2019, it still needs to shift 90 open-market units, around 25 of which are priced above £600,000. This is in addition to selling some affordable units and exchanging contracts on further build-to-rent agreements.
Telford is at the early stages of its second off-plan launch at Gallions Point, and much depends on how well demand from overseas buyers holds up. On the plus side, most of the proposed units will be priced below £600,000. On the build-to-rent side, it has been chosen to partner a major land owner to apply for consent to build 700 homes on an east London site.
