LONDON (ShareCast) - Housebuilder Gleeson said market conditions have become worse since it issued a profit warning earlier this year.

On February 29, Gleeson, which operates mainly in northern English locations such as Liverpool, Manchester and Sheffield, reported a widening in losses amid an “extremely challenging” market.

“Since this announcement, market conditions have deteriorated further,” the company said today.
“Many mortgage products have been withdrawn, mortgage rates and fees have increased and more substantial deposits are being required by most lenders. Moreover consumer confidence has also declined.”

Results for the full year could still meet market expectations, the company said, but added that this depends on its housing and strategic land divisions meeting their most recent forecasts.

Profits will be reduced by £4.1m following the settlement of a legal action with DGHL over a development in Sheffield.

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