TELFORD HOMES, the London-focused residential developer, yesterday said demand from UK and overseas buyers means it will report a better-than-expected rise in first half profits.
The east London housebuilder said the Olympics had helped to boost London’s profile, attracting overseas investors as well as owner-occupiers to its schemes.
Foreign investors buying up property to rent have helped to stimulate the market in the absence of mortgage financing and the lack of supply of new homes for domestic home-buyers, the company said in a trading update.
“The strength of London as a global city, its international appeal, transport connections and a shortage of new homes make the group’s area of operation particularly attractive, especially on the back of a very successful Olympic Games,” Telford said.
It now expects to deliver “a significant increase” in half year profits with a total of 252 sales completed – double the 125 achieved in the same period last year.
The group added that profit in for the full year to March 2013 would be in line with expectations while profit for the 2013-14 fiscal year was anticipated to beat City forecasts, having already pre-sold more than half its homes for the period.
Shares rose six per cent to 145p yesterday.