MJ Gleeson, a UK-based housebuilder focused on providing homes for key workers, reported a significant decline in new home sales over the summer months, attributing the slowdown to several external factors. Graham Prothero, the company’s chief executive, cited a mix of higher mortgage interest rates, geopolitical tensions linked to the ongoing war involving Iran, the World Cup, and unusually hot weather as key contributors to the subdued market conditions.

The company’s sales for July and August were down 20 percent compared to the same period in 2025, which was already a relatively quiet year for the sector. Prothero described August as particularly difficult but noted some improvement since the start of the school term, though he cautioned that overall market recovery remained uncertain. “We’ll see where it goes from here. The market hasn’t capitulated, but it’s hard work,” he said.

MJ Gleeson, which primarily operates in northern England and the Midlands, acknowledged that the current market challenges that have persisted since February—coinciding with a military confrontation involving US and Israeli forces against Iran—are unlikely to ease significantly in the near future. Despite these headwinds and a slow start to the new financial year, the company maintained its forecast for improved profitability in 2026.

For the 12 months ending June 30, Gleeson sold 1,968 homes, marking a 10 percent increase over the previous year. Nonetheless, the company faced narrowing profit margins due to rising build costs outpacing house price inflation. This contributed to a statutory pre-tax loss of £2.7 million, a reversal from a £20.5 million profit the prior year. The loss included nearly £14 million in exceptional charges related to job reductions, additional council-mandated work for road adoption at some developments, and the decision to halt construction at one site in Yorkshire.

When adjusting for these costs, Gleeson reported a pre-tax profit of £10.8 million, about half of the £21.9 million earned in the prior year. Reflecting these results, the total dividend was reduced from 11 pence to 5 pence per share, with a final dividend of 1 pence scheduled for payment on November 20.

Despite the cautious outlook, Gleeson signaled it expects to meet market forecasts for an adjusted pre-tax profit of approximately £18.8 million in the current financial year. Some industry analysts viewed this as an ambitious target given the ongoing challenges, including slower sales, a subdued land acquisition market, and persistent inflation in building costs.

Shares in MJ Gleeson experienced a modest increase amid renewed sector pressure, closing 1 percent higher at 249 pence.