Telford boosts profits due to build-to-rent initiative

Pre-tax profits hit £34.1m for the year to 31 March 2017 from £32.2m for the previous year. Its turnover grew to £291.9m from £245.6m.

The group said its customer mix for the year to 31 March had moved significantly towards institutional build-to-rent investors, with this sector representing 77% of sales generated, compared with 24% in 2016.

Individual investors from the UK and overseas make up just 20% of the group’s sales for the year, while owner-occupiers make up 3% of transactions.

Telford said it was looking to enter longer-term strategic partnerships with institutional investors in the build-to-rent sector.

Since February last year, Telford has entered into four build-to-rent transactions comprising nearly 500 homes, together worth more than £230m.

The firm currently has a development pipeline of £1.5bn.

Jon Di-Stefano, chief executive of Telford Homes, said: “Since the start of 2016 we have swiftly established Telford Homes at the forefront of the London build-to-rent sector with over £230m of combined contract value secured to date. Build-to-rent is a strategic focus for the group and we expect to further increase our activity in the coming months. Our confidence in delivering continued growth remains unchanged, supported by the chronic need for homes in London.”