Housebuilder MJ Gleeson has warned it expects a weaker first half of its financial year, as first-time buyers delay purchases and cancel orders while they wait for the government's Your First Home scheme to launch in April.

Buyers pause ahead of April launch

In a trading update issued ahead of its annual general meeting on Friday, the affordable-homes specialist said sales rates had improved after a weak summer but remained subdued. Open-market net reservations stood at 0.53 per site per week in the eight weeks to 1 November, barely changed from 0.52 in the same period a year earlier.

Gleeson welcomed the scheme, saying it had "significant potential" for its target customers. Under the plans, first-time buyers who put down a 2.5% deposit will receive a 20% equity loan towards a new-build home. But the company warned that announcing the scheme about five months before it starts was likely to postpone demand and increase cancellations in the meantime.

Profits pushed into second half

The board now expects profits to be significantly weighted towards the second half of the year, with meeting full-year market expectations dependent on a further improvement in buyer confidence. Shares in the company fell around 2% to 270p on Friday morning.

Gleeson also flagged poor visibility over the timing of land sales in its Gleeson Land division, although it said it was close to completing a delayed large land sale. The company, which focuses on affordable housing in the Midlands and the north of England, said it was taking a cautious stance on working capital and site acquisitions. It will next update investors on trading in January 2027, ahead of half-year results in February.