The construction and house building group, Galliford Try has seen a 38% growth in home sales reservations but more subdued trading in its construction business.
For the current financial year (to June 2012) total reservations in Housebuilding stand at £342m from the 82 housing projects Galliford is involved with. In 2010 the equivalent figure was £212m.
House builders have been desperate to buy land for development since the financial crisis of 2008 because chepaer land prices translate into higher margins. Galliford Try claims it is pulling this off, with 73% of it 10,500 plot land bank secured at post 2008 prices.
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Interestingly, the firm also says mortgage availability is noticeably increasing and it has been able to find a 95% loan to value product for its customers.
The construction arm of the firm has been deliberately shrunk in line with economic conditions. Despite project wins for Anglian Water and the London Development Agency the total order book sits at £1.6bn, down from £1.75bn in 2010.
Greg Fitzgerald, Galliford Try's Chief Executive, commented on the results: "Although the economic outlook remains uncertain, we have been encouraged by the performance of our housebuilding business as its growth plan comes to fruition during this financial year. Construction is benefitting from its long term frameworks, particularly for the water industry, during the current more challenging markets."
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