MJ Gleeson has said that sales rates in its homes division have improved after the "weak summer" but still remain subdued.

The housebuilder and land promoter stated in its AGM trading update that its open market net reservation rates for the eight weeks to 1 November were 0.53 per site per week, against 0.52 in the comparable period last year.

The group welcomed the Government’s introduction of the Your First Home scheme, adding that it believes it has "significant potential to assist its target demographic of first-time buyers".

For the division, MJ Gleeson anticipates a weaker first half, with the pace of recovery in the second half "increasingly dependent" on the efficient and timely introduction of the scheme.

In its land division, the firm said it is making good progress on securing final technical approval for the delayed large land sale, with the vast majority of issues resolved.

It added that the sale option exercise and subsequent completion are expected to take place over the next few months. MJ Gleeson as also secured planning permission on three sites but continue to see adviser committee decisions following change in political control after the recent local elections, meaning more sites having to go to appeal.

It remains positive on its medium-term outlook for this division.

In its outlook, the firm said it anticipates its profits to be "significantly weighted" towards the second half of the year, given the likely timing of the YFH introduction and its impact on home sales.

It expects its profit before tax to total £17m in FY27, with completions reaching 1,970.

Following the update, shares in MJ Gleeson fell by 2.5%.

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