35. MJ Gleeson Plc
Affordable Homes Builder
From its Sheffield base, MJ Gleeson Plc builds affordable homes and develops land for other housebuilders across the UK, targeting first-time buyers and local communities. Operating in the residential construction industry – specifically in low-cost housing and land regeneration – the company focuses on the North of England and Midlands, where demand for budget-friendly homes remains strong.
MJ Gleeson generates revenue through two divisions: Gleeson Homes and Gleeson Land. Gleeson Homes builds and sells affordable houses, typically priced between £150,000 and £250,000, to first-time buyers, often on brownfield sites. It completed 1,767 homes in the year ending June 2024, down from 1,723 the previous year, with an average selling price of £186,200. Revenue from this division comes directly from home sales, often supported by government schemes like Help to Buy, though high interest rates have reduced affordability. Gleeson Land, the smaller division, prepares and sells land with planning permission to other developers, earning fees per plot; for example, a 2024 deal in Doncaster sold 400 plots for £10 million. Total revenue for 2024 was £341.5 million, up 4% from £328.1 million, but operating profit fell 37.5% to £29.2 million because of a tougher market and cost inflation.
Strategically, MJ Gleeson maintains a land pipeline of >15,000 plots for future development and focuses on affordability, with 89% of its 2024 buyers being first-timers. The company has also invested in sustainability, aiming to reduce carbon emissions per home by 40% by 2030, aligning with regulatory pressures. Employing around 800 people, MJ Gleeson faces significant challenges – the UK housing market has slowed in 2025, with interest rates above 5% deterring buyers, and planning delays have hampered land sales, as seen in a 2024 profit warning. Build cost inflation, though easing, remains a concern, squeezing margins despite a 1.7% rise in average selling prices.
MJ Gleeson’s niche in affordable housing and its strong land pipeline provide a foundation for growth, especially as the UK grapples with a housing shortage. However, economic headwinds, regulatory hurdles, and a competitive market pose risks to its profitability and expansion plans.
Overall, I have an aversion to house builders. It is perfectly possible to create well-ran, profitable house builders but in the UK we seem to be endowed with questionable management teams. Oddly enough, one of the best performing stocks over the last thirty years in the entire world – one that has delivered over 100,000% (a thousand bagger) – is NVR, a US house builder but this should be considered the exception. MJ Gleeson doesn’t qualify for further work from Wonder Stocks.
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