MILLER Homes chief executive Chris Endsor has said the housing giant expects to grow annual sales volumes in Scotland by at least a third by 2020 and he doesn’t want another independence referendum in the country.
Mr Endsor said Miller is aiming to sell 800 homes in Scotland in 2020 with a focus on the Central Belt, but he reckons that figure could easily increase to 1,000.
“Our target market is very much family housing in locations that are convenient for commuters to Edinburgh and Glasgow and the market in Scotland has been very strong indeed,” said Mr Endsor.
Miller sold 612 homes in Scotland last year, up 11 per cent from 550 in 2015.
Speaking after Miller posted a 44 per cent increase in annual profits, to £89 million from £62m, Mr Endsor said there has been no sign of the market slowing in the first eight weeks of the current year.
Asked about Nicola Sturgeon saying that late next year would be a common sense time to hold a second independence referendum in Scotland, Mr Endsor said: “I’m not sure the timescale for another referendum can be clear until the outcome of the Brexit negotiations are more visible.”
He added: “I would prefer there not to be one. I think the UK outside the EU would be more robust as an economy intact with Scotland as part of it.”
Mr Endsor said remaining part of the UK would be best for Scotland’s economy.
However, he said the market in Scotland had been fine in the period leading up to the independence referendum in 2014 and in the months after the vote.
Miller Homes said the Brexit vote in June had no discernible impact on the business which continued to perform strongly in the second half of 2016. Sales rates increased 17 per cent on the same period in 2015.
Mr Endsor is confident that the housing market is in good shape in the areas of the country Miller Homes focuses on and has no fears that a slowdown may be looming.
Scotland accounts for around 25 per cent of Miller’s sales, with the rest coming from operations in England. Miller has a limited presence in the South East around London.
Mr Endsor noted that while demand for homes is strong house prices have been rising at modest rates.
Miller said key factors to a sustainable housing market, such as low interest rates, improved and disciplined mortgage lending and high employment, remain in place.
Miller’s average selling price in Scotland fell to £253,000 last year, from £262,000 in 2015. Mr Endsor said the fall reflected the fact the sales mix in 2015 included more of Miller’s larger homes.
Miller has been buying land in Scotland to support its growth plans.
The group’s average selling price increased to £231,000 last year, from £227,000 in 2015.
Miller expects to increase total unit sales to 4,000 in 2020. It sold 2,380 homes in 2016 and 2,153 the preceding year.
Revenues increased 13 per cent to £565m in 2016, from £500m the preceding year.
Control of the parent Miller Homes group passed from the founding Miller family in 2008 to GSO Partners, part of private equity giant Blackstone Group.
Shareholders in the group include members of the Miller family, Shackleton Capital Partners, Lloyds Banking Group and Noble Grossart investment bank.
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