A chronic housing shortage wasn’t the only factor that helped the London property market to recover following the global financial crisis, but it’s certainly underpinning long-term prospects for Telford Homes (TEF).
In a trading update ahead of the group's half-year results on 29 November, the builder highlighted an existing pipeline of more than 4,000 new homes to be delivered across London at an expected average market price of £530,000. However, as previously foreshadowed, the sequencing of developments means that pre-tax profits are likely to fall short of the comparable figure in 2016.
Another structural driver centres on the search for yield, as Telford has seen increased activity around institutional 'build to rent' sales. Telford has been one of the first movers in this rapidly expanding space through transactions with the likes of M&G Real Estate, L&Q and Greystar. Chief executive Jon Di-Stefano said he anticipates “more build-to-rent transactions as institutional demand continues to grow”.
