Countryside Properties completions up 28% amid good demand

Countryside Properties posted a jump in completions on Wednesday thanks to strong demand from first-time buyers and low interest rates.

In a trading update for the year from 1 October 2016 to 30 September 2017, the company said completions rose 28% from the year before to 3,389 homes, with the net reservations rate coming in at 0.84 compared to 0.78.

Meanwhile, private average selling prices fell by 8% to £430,000, in line with expectations, with underlying sales price growth of 5%. The private forward order book was up 8% to £242.4m.

In the Partnerships division, total completions grew by 17% to 2,192 homes, while the ASP increased by 12% to £343,000, driven by strong price growth in outer London and regional cities. Private completions were up 31% to 825 homes, while private rental sector units were broadly flat at 721 and affordable homes were up 27% to 646.

In Housebuilding, total completions rose 53% to 1,197 homes, including 837 private homes, up 68% on the prior year.

Chief executive Ian Sutcliffe said: "We continue to see industry leading growth from our mixed tenure delivery and excellent returns from our innovative Partnerships business model. We have successfully positioned our business to meet the strongest areas of customer demand and are greatly encouraged by the continued and increased political support for mixed tenure housing.

"We see further opportunities for both our Partnerships and Housebuilding divisions and remain entirely confident in delivering our medium-term growth plans."

At 0905 BST, the shares were down 04% to 346.55p.