“If a housebuilder does not increase its output by a given percentage in one year, access to Help to Buy subsidies the following year should be reduced accordingly”
Avant Homes has announced a new building strategy which will see it more than double its output to 4,000 homes per year.
The mid-market northern UK housebuilder said that it was set to achieve its existing strategic growth target of 2,000 units per annum a year ahead of schedule, at the end of 2018.
It is now setting a new five year target of more than doubling its volume to 4,000 homes per year by 2023. Avant said that its growth would be delivered through further development of its product range and “continued geographic expansion”.
It added that it was on track to deliver around 25% revenue growth for the year end April 27 2018. During its financial year it achieved “significant growth” in scale with the business expecting to increase outlets by 40% by the end of FY18 to 70 outlets.
The business said it saw a strong start to the spring selling season following a “robust” autumn. At the same time the rate of sale during the past 52 weeks was slightly down at 0.74 sales per site per week against 2017’s 0.81. However, this was across an average of 44 selling sites, against 35 last year.
Reservation rates since the start of the calendar year were 0.85 sales per site per week, level with last year’s.
Avant noted the “sound” UK housing market. However, the company called for a reform to Help to Buy, stating that the availability of the equity loan initiative should be linked to housebuilders increasing output. “If a housebuilder does not increase its output by a given percentage in one year, access to Help to Buy subsidies the following year should be reduced accordingly,” it said.
Colin Lewis, Avant’s ceo, said: “We have made exceptional progress in growing our business over the past few years thanks to our relentless focus on offering aspirational, customer-led homes in prime locations across the Midlands, the north of England and central belt of Scotland.”