MJ Gleeson AGM update: reservations rise 22% despite subdued demand
MJ Gleeson’s AGM trading update lands with a clear headline: open market net reservation rates rose 22% to 0.50 per site per week for the eight weeks to 7 November 2025, up from 0.41 a year ago. Including bulk reservations, the rate was 0.92 per site per week versus 0.46. That’s encouraging momentum in a tricky market.
The company is plain about the backdrop: demand “remains subdued, but steady”, with buyer confidence dented by the current economic environment. Planning resourcing at local authorities is still slowing the opening of new sites. Even so, Gleeson is adding outlets, moving land through the system, and guiding that FY2026 should be in line with market expectations.
Gleeson Homes: stronger reservations, fewer active outlets
Reservations are the near-term lifeblood for any housebuilder, and a 22% uplift is a good signal. At 0.50 per site per week on the open market (0.92 including bulk reservations), sales pace is moving in the right direction compared with the same period last year.
Set against that, Gleeson is currently selling on 59 sites, down from 64 at 31 October 2024. Fewer open sales outlets can cap absolute volumes, even if per-site rates improve. Planning bottlenecks are the culprit: resource-constrained local planning is still impeding new site openings.
New sites opened and sales started
Since the start of the 2026 financial year, Gleeson Homes has opened six new build sites. Five new sites have commenced sales. For context, the comparable numbers in the four months to 31 October 2024 were six openings and seven commencements. Progress is happening, just a touch slower on commencements year-on-year.
Demand steady, confidence fragile
Management’s read-through is cautious: buyers are lacking confidence. That often means longer decision times, a heavier reliance on incentives, and a sales mix that can skew towards value points. The uplift in reservations suggests Gleeson’s affordable positioning is doing some heavy lifting against that headwind.
Gleeson Land: two sales done, one big site hinges on a solution
The land promotion arm has completed the sale of two small sites since the financial year began. The bigger swing factor is one site that represents approximately 50% of total plots budgeted to be sold this year, which still depends on finalising a technical solution. The RNS doesn’t disclose details of the issue, but the implication is clear: timing here matters.
Even so, Gleeson Land says it’s on track with growth plans and aiming to submit 18 planning applications in the first half of the financial year. That pipeline matters for fee generation and for the broader housing land supply story.
Outlook: “in line” guidance, with an eye on the Autumn Budget
The Board expects results for the year to 30 June 2026 to be in line with current market expectations, while noting the Government’s Autumn Budget on 26 November 2025. In other words, no change to guidance today.
Diary dates are set: a trading update for the six months to 31 December 2025 on 16 January 2026, and results for that period on 11 February 2026.
Key numbers at a glance
| Metric | Latest | Prior period |
|---|---|---|
| Open market net reservation rate | 0.50 per site per week | 0.41 per site per week |
| Reservation rate (including bulk) | 0.92 per site per week | 0.46 per site per week |
| Sites currently selling | 59 | 64 (31 October 2024) |
| New build sites opened (FY2026 to date) | 6 | 6 (four months to 31 October 2024) |
| New sites commenced sales (FY2026 to date) | 5 | 7 (four months to 31 October 2024) |
| Gleeson Land site sales (FY2026 to date) | 2 small sites | Not disclosed |
| Planning applications targeted (H1) | 18 | Not disclosed |
My take: positives and watch-outs for investors
What looks positive
- Sales momentum: a 22% increase in open market reservation rates is a clear improvement on last year’s run-rate.
- Bulk support: the 0.92 per site per week including bulk reservations suggests institutional or larger multi-unit deals are helping to underpin volumes.
- Land engine ticking over: two site sales completed and a push to submit 18 planning applications in H1 point to forward activity and potential disposals.
- Guidance intact: “in line with current market expectations” provides reassurance that cost control and pricing are holding together for now.
What to keep an eye on
- Outlet count: selling on 59 sites versus 64 last year could limit total completions unless new outlets ramp quickly.
- Planning delays: resource constraints at local authorities remain a structural handbrake on growth.
- Concentration risk at Gleeson Land: one site representing about 50% of budgeted plots depends on a technical solution – timing and outcome are key.
- Macro sensitivity: buyer confidence is fragile, and the Autumn Budget on 26 November 2025 could influence affordability and demand.
What could move the shares next
- Autumn Budget outcomes on housing, planning or consumer support on 26 November 2025.
- Update on the “technical solution” for the large Gleeson Land site that underpins around half of budgeted plots.
- Reservation trends through December and into January’s H1 trading update.
- Pace of new site commencements and any improvement in planning throughput.
Quick jargon buster
- Net reservation rate: the average number of homes reserved per site per week, after cancellations. It’s a leading indicator of future sales.
- Bulk reservations: larger multi-unit reservations that can boost overall sales pace compared with one-by-one retail buyers.
- Plots: individual housing units in the pipeline, either to be built or to be sold as part of a land transaction.
- Land promotion: securing planning consent on land (usually on behalf of landowners) and then selling that consented land to housebuilders.
- Planning applications: formal submissions to local authorities seeking permission to develop; a key step before construction or land sale.
About MJ Gleeson’s positioning
Gleeson builds affordable, traditional brick-built homes across the Midlands and North of England, with prices starting from £100,000 for a two-bedroom home. The strategy focuses on ensuring a meaningful proportion of homes are affordable to a couple earning the National Living Wage, and on delivering monthly costs that compare favourably to renting.
The group also leans into its social and environmental credentials through selected UN Sustainable Development Goals. More detail on sustainability is available on the company’s site: https://www.mjgleesonplc.com/sustainability.
Where to find consensus and upcoming news
Management points investors to the analyst consensus for FY2026 here: https://www.mjgleesonplc.com/investors/analyst-coverage/. Key dates are 16 January 2026 (H1 trading update) and 11 February 2026 (H1 results).
Bottom line: despite a cautious consumer and planning hurdles, Gleeson’s core sales metrics are moving up, guidance is steady, and the land division has clear near-term catalysts. The big swing factor is that one land site – a green light there would materially de-risk FY2026 delivery.
