AN affordable housing provider is plotting further expansion after low income families spurned council rents to propel its order book to new heights.

MJ Gleeson says it has moved closer to its 1,000 annual sale target after buyers pounced on developments.

Bosses say the success means the company, which has homes across the North-East, including properties in Middlesbrough and Chilton, near Ferryhill, County Durham, is close to extending its North-East presence.

The plans come just weeks after Gleeson revealed a £40m cash injection to open more sites and help first-time buyers on the property ladder.

Its sales vision was revealed today (Monday, September 26) in a financial update for the year to June 30, which showed group pre-tax profits were 63 per cent better off than a year ago at £28.2m.

Officials said the rise was helped by 904 sales in its Gleeson Homes division compared to 751 in the previous year.

Chairman Dermot Gleeson said the achievements of its housing branch, which has offices in Chester-le-Street and Wynyard Park, near Stockton, was providing a real lift, adding it was benefiting from lower-earning families turning away from council properties.

He said: “Demand remains strong and hardworking families remain committed to home ownership.

“The cost of owning one of our homes is, in many cases, cheaper than an equivalent council house rent.

“We are now comfortably in sight of our target of 1,000 sales per annum and we expect to reach this target during the next financial year.

“We are in a strong position to deliver further growth, market demand remains strong and our growing land pipeline provides the opportunity to open new sites in existing and new regions in the North.”

Mr Gleeson also said the business, like a number of fellow housebuilders, had seen little impact from the Brexit vote, confirming it was “business as usual.”

He said: “The mortgage advisors and other organisations we work very closely with, including online property websites, have reported no drop in enquiries or demand.”

He added the company’s land division, which helps landowners get good deals for Greenfield sites, had seen operating profit rise from £8.1m to £10.2m.

Gleeson has homes across County Durham in New Kyo, near Annfield Plain; Chilton, near Ferryhill; and Leadgate, near Consett, and plans to build properties in Catterick Garrison, North Yorkshire, and Peterlee, east Durham.