Despite the fall in the average selling price of one of its’ properties, Cala Homes has predicted a record-breaking year of profits as well as revenues.
In the final six months of 2016, the house builder stated that reservations had grown by 24% in comparison with the same period in the previous year.
In 2015, the average selling price for one of its properties was £529,000, falling to £504,000 in 2016. However, the rate of weekly sales increased, so the fall in average price had a less significant impact; lower value homes were sold in higher volumes.
According to the chief executive, Alan Brown, building fewer homes worth in excess of £1 million had been a conscious decision.
Building the majority of its homes in the south of England, Cala stated that it is on course to meet its financial aims of a £1 billion turnover; delivering an annual 2,500 homes within four years.
Commenting on the figures, Mr Brown described the results as “really positive”, stating that the company has “significant momentum, the market is going well and we are delivering on targets”.
He also expressed positivity towards the Government’s housing white paper, delivered earlier this month (07/01/17), stating that it had dealt with around three quarters “of what’s needed and you wouldn’t expect to get 100%.”
Speaking highly of the document, Mr Brown praised the plans to increase planning fees and enable smaller developers to survive in the market.
He stated: “It sounds like the Government is listening to the industry and wants to work with it to solve the problems”.