Telford Homes thrives amid 'acute need' for build-to-rent properties

London-based residential developer Telford Homes said on Wednesday that the "ongoing and acute need" for more homes to be built in London continued to underpin its long-term belief in growing the firm's development capacity.

Telford said that properties within its existing pipeline of over 4,000 new homes to be delivered across London held an expected average market price of £530,000.

The firm said it was developing nearly 500 build-to-rent homes, with almost 900 more to be added to the pipeline for 2018 after finalising a pre-construction agreement with Greystar in June.

In the trading update, which came ahead of the group's interim results on 29 November, Telford reminded investors that pre-tax profit over the company's first-half trading would, as expected, be significantly lower than its upcoming second half, and a drop in its 2016 figures.

Telford said it was "on track" to exceed £40m of profit before tax for the full year leading to 31 March 2018.

Jon Di-Stefano, chief executive of Telford Homes, said, "We are focused on reducing risk through forward sales, limiting our need for external debt finance and delivering higher capital returns and this fits perfectly with our strategic move into the build to rent sector.

"I expect more build to rent transactions as institutional demand continues to grow alongside continuing open market sales at our well-located developments. Our ultimate belief in what we do is underpinned by a chronic lack of supply and we expect to deliver more of the homes that London needs in the coming years," he said.

As of 0900 BST, shares had dipped 1.81% to 400.84p.