We wrote after our lunch in February with Telford Homes and commented positively again in our pre-Election housing note “cycle not yet over, opportunities remain”. At that stage the group had just increased its banking facilities by 50% - a strong vote of confidence by the syndicate in both the company and the London mid-market for homes. Since then we have had the expected solid prelims, an upbeat AGM statement and last month the company invested £23m in acquiring four significant sites via the cash purchase of the UHD regeneration business. We continue to believe the company is very well-positioned for the medium term and see recent general concerns as overdone regarding Buy to Let and a cooling London market at the premium end. We consider Telford a core play on London ahead of the trading update in mid-October and remain positive on the PRS sector, where we think the group could in due course look to target institutional as well as private investors.
