We attended a site visit yesterday to several of Telford Homes’ sites at various stages of development. The trip provided good examples of regeneration in non-prime areas of London where Telford builds high quality homes at affordable prices. All sites that have launched are selling well, with a forward sales position of £700m as at the interims. Whilst there is lots of press commentary around a cooling London market, the differing supply and demand dynamics in the company’s areas of development continue to support its growth trajectory. With a significant institutional PRS deal announced on 15th February (Caledonian Road) and another deal in the pipeline, Telford expects Institutional PRS to form a significant part of its overall portfolio in the medium term. We continue to be positive on the prospects for PRS and believe this provides an opportunity to add considerable scale to the Group. Overall, the site visit reinforced our confidence in the Telford Homes model, the Group’s medium term prospects and the London mid-market.
