Countryside Properties remains confident for 2017 despite Brexit uncertainty

Countryside Properties quarterly completions rose as its average selling price increased with the housebuilder confident for its full year results despite economic uncertainty over Brexit.

The company said that as outlet growth and net reservation rates have remained strong throughout the first quarter, it is confident in meeting both half year and full year results with some weakness at the top end of the market being compensated for by strong performance at lower price points.

It said: “While there remains some uncertainty over the Brexit transition, strong customer demand, low interest rates and continued government support give us great confidence that we remain firmly on track to deliver our medium term growth targets."

For the quarter ended 31 December, the total completions were up 23% to 581 units, from the previous year.

The sales price growth rose 4% to a private average selling price of £443,000, from £507,000.

Net reservation rates increased 20% at 0.73 and open sales outlets were up 44% to 46.

The FTSE 250 company's private forward order book was up 76% to £292.9m.

In the partnerships division, total completions were up significantly in the quarter, which the company said positions the business to deliver on its growth plans for the year. It secured 1,498 plots in the quarter and the bid pipeline was up 12% to 37,410 compared with 30 September 2016.

The housebuilding division saw “robust growth” in completions. The division secured secured a further 2,088 plots and have increased plots with planning by 1,965 to 11,172.

In line with the company’s plan, our private average selling price in the housebuilding division has been managed lower to ensure affordability.

Chief executive Ian Sutcliffe, said: "Our balanced and differentiated business model positions us well to deliver growth, capital efficiency and long term resilience. We continue to see further significant opportunity in the partnerships division and strong growth in our housebuilding division."

Shares in Countryside Properties were down 0.08% to 237.80p at 0858 GMT.