Glenveagh says improved planning process helping firm meet strong demand for housing

Stephen Garvey, CEO of Glenveagh

Jon Ihle

Homebuilder Glenveagh said that it is continuing “to benefit from very strong underlying demand” and has already booked 1,150 suburban units for sale, putting the firm on track to exceed last year’s outturn of 1,354.

The company reiterated its profit guidance in a trading update ahead of its annual general meeting today and said it had made “significant progress” in an improved planning environment.

“We have made good progress so far in 2023 with an advancing order book, strong market demand, improved planning momentum and increased Government impetus around demand and supply side initiatives,” said chief executive Stephen Garvey.

“This supports our confidence around delivering our short and medium-term goals, with our Return on Equity target of 15pc in 2024 continuing to be our key capital metric. Operationally, our programme of site openings is progressing very well with more to come in the second half of the year.”

Glenveagh said it was active on 21 construction sites, with four new locations opened so far this year. More new sites and phases of ongoing projects are expected to open later this year, too, with deliveries of completed homes due next year, the company said.

The firm told shareholders it had “increasing confidence” on housing delivery into next year and beyond after seeing progress in planning delays.

Mr Garvey has been a vocal critic of the planning process in recent years, arguing that extensive and costly reviews threatened the commercial viability of housing developments.

So far this year, Glenveagh has received permission for roughly 3,400 units from 15 applications. About 2,000 of those homes are currently tied up in post-permission appeals, however, according to Glenveagh.

“The planning environment is improving, in particular the LRD [large-scale residential development] planning process,” Mr Garvey said.

“But there remains plenty to do to ensure the country can accelerate housing supply in coming years. Providing ample resourcing to planning bodies, local authorities and utility companies in the near term is critical for the sustainable delivery of increased housing supply.

“The industry also needs a national planning framework that accurately reflects present and future population requirements, supporting viability and designed for appropriately located homes that people want and need.”

Glenveagh’s shares have gained 26.24pc in the year to date and are up 7.34pc in the last 12 months after a long period of underperformance.