"During the final quarter of 2022, the impact of the UK government’s mini budget on the financial markets directly influenced buyer confidence"
Issuing its preliminary results for the year to December 31 2022, the business said its revenue had lifted 9% on 2021 to £1.36bn and anticipates a 27% increase on pre-tax profit to £169m. Cala’s total home completions during the year rose 4% to 3,027 homes. The private average sales price improved from 2021’s £462,000 to £492,000.
The firm said that strong market conditions for the first nine months of the year allowed it to sell out for 2022 in September. But the final quarter of the year caused sales per site per week for the 12-month period to fall to 0.62 from 2021’s 0.76.
Cala stated: “This reflects a reduction in sales rate during the final quarter of the year, when changes in the mortgage market, triggered by the UK government’s mini-budget, began to affect buyer confidence."
As of the end of 2022, Cala’s private forward sales were 751, equating to £396 million GDV (gross development value), a decline on 2021’s 994 units and £488 million GDV, reflecting the “challenging market” of Q4.
The housebuilder noted that this year the market would be tough with cost-of-living pressures and increases in mortgage rates.
Kevin Whitaker, Cala Group’s CEO, said: “We benefited from excellent market conditions in the first nine months of the year. During the final quarter of 2022, the impact of the UK government’s mini budget on the financial markets directly influenced buyer confidence. This has naturally affected sales rates in recent months and has impacted the strength of our forward sales position.
“Cala is well-placed to navigate the changing market conditions with the backing of our owners, Legal & General, alongside the talent, commitment and quality of our teams.”
Whitaker added that new, energy-efficient homes were a “great alternative” against a backdrop of increased fuel costs “and reduced availability of second-hand homes."
