Housebuilder London Square cheers sales leap

London Square has posted higher annual revenues and joined the list of housebuilders reporting a flurry of sales since the market reopened from lockdown.

The industry was hit in March when the coronavirus crisis forced companies to shut sales offices, physical viewings were off the cards, and people were urged to delay moving where possible.

The government relaxed the rules in May, with a number of firms seeing pent-up demand for homes. Buyers have also been encouraged by Chancellor Rishi Sunak in July announcing a suspension of stamp duty on property sales of up to £500,000 until March 2021.

London Square saw an increase of over 400% in potential buyers visiting show homes or taking real and virtual viewings in the week ending May 24, compared to a week earlier when only virtual viewings were allowed.

It added that it had a busy period in June, July and August, although it pointed out it had benefited from more available stock this year than last due to the different timings of projects.

Sales per site per week were nearly treble the rate achieved in 2019. It sold homes at its developments including Bermondsey and Staines Upon Thames. The prices of homes sold range from £292,000 to £1.1 million.

The update came as London Square filed annual accounts for the year to March. It recorded revenue of £272.4 million, up from £168.3 million.

Operating profit improved to £10.8 million from £6.5 million.

Mark Pain, chairman of 10-year-old London Square, said: “The group delivered a strong operational performance, achieved despite the impact of the growing likelihood of the UK leaving the EU without a formal withdrawal agreement and the year-end being impacted by the effects of the Covid-19 pandemic."

Chief executive Adam Lawrence said: “This year has continued with uncertainty about the UK and its future on leaving the EU, plus the immediate impact of the Covid-19 pandemic. All our sites and sales offices had reopened by May 2020 and although, with Government restrictions in place, we are operating at 80% capacity, we are confident that delivery can be maintained."