Keepmoat holds its ground in a tough market as homes sold fall but margins and land bank strengthen

Keepmoat Homes Limited has reported a year of consolidation for its financial year ended 31 October 2025, with revenue and completions falling against a difficult housing market backdrop, but with rising selling prices, an improved gross margin, a stronger balance sheet and a substantially larger land pipeline pointing to a platform for renewed growth.

The Doncaster-based partnership housebuilder, which is approaching its centenary in 2028, posted revenue of £694.5m, down 4.2% from £724.7m the previous year. The decline was driven by an 11.2% fall in homes sold to 2,920 (2024: 3,289), partly offset by an 8.2% increase in the average selling price to £238,000 (2024: £220,000).

Fewer outlets weigh on volumes

Management attributed the lower output primarily to a reduced number of active sales outlets during the year — itself a consequence of a deliberate and conservative slowdown in land buying through the post-pandemic period of high inflation and interest rates, compounded by planning delays that pushed back approvals. The company has since restarted its drive to grow the land pipeline and says it is beginning to see some improvement in the planning system.

Despite the drop in volumes, profitability held up reasonably well. Gross profit was broadly flat at £130.9m (2024: £131.5m), and the gross margin actually edged up to 18.8% from 18.1% as selling prices remained firm while build cost inflation eased to a lower rate than the prior year. Operating profit fell to £56.7m from £63.5m, which the company linked mainly to higher staff costs reflecting wage inflation and increased national insurance contributions. Profit before tax came in at £45.8m, down from £53.0m, while profit after tax was £37.6m (2024: £43.6m).

Balance sheet and land bank strengthen

The financial position improved over the year. Net assets rose 9.5% to £465.1m (2024: £424.7m), and inventories increased 7.5% to £590.7m. The company closed the year with cash of £118.5m, which it described as leaving it well placed to invest for growth.

Arguably the standout figure is the land pipeline. Planned future completions, including sites where Keepmoat has been appointed preferred developer, rose to more than 28,800 plots from over 24,400 a year earlier — equivalent to roughly nine years of delivery at current volumes. That forward visibility, secured largely on a capital-light basis through the company's partnership model, underpins its ambition to accelerate output as conditions improve.

The partnership approach — working with local authorities, Registered Providers and the private rented sector to source land and de-risk delivery — remains central to the strategy. Delivery to Registered Providers, including elective deals, accounted for 36.2% of volume in the year, down from 44.8%, reflecting the company's mixed-tenure model and providing resilience in a softer private market.

Leadership change and a clear strategy

The year saw a change at the top, with Ian Hoad appointed Chief Executive Officer on 1 July 2025 following the resignation of Tim Beale. In his review, Hoad framed the period as one of consolidation that positions the business to deliver its growth plan, and pointed to expansion in the South West — where Keepmoat has opened its tenth regional operation, based in Bristol — and continued growth in Scotland, where the business secured six new sites set to deliver more than 1,600 plots.

Notable schemes highlighted during the year include the £265m regeneration of The Rise in Scotswood in Newcastle, the Hull Citywide Partnership, the former Gedling Colliery in Nottinghamshire — where 725 homes have been delivered with a further 227 scheduled — and Northstowe near Cambridge, the UK's largest new town, where Keepmoat expects to build around 1,800 homes.

Affordability and sustainability in focus

With national house prices averaging around £270,000, Keepmoat continues to position its homes below regional new-build averages, and reports that 74% of its open-market sales went to first-time buyers. The company is also leaning into the transition to the Future Homes Standard, with 39% of homes sold during the year achieving an EPC A rating, up sharply from 10% the prior year.

On carbon, Scope 1 and 2 emissions across the wider Keepmoat group fell 18.0% to 2,799 tonnes of CO2 equivalent, against science-based targets verified in early 2024 and a published Net Zero 2045 plan.

Outlook

Keepmoat acknowledges that consumer confidence and private-buyer activity remain below normal levels, with affordability still constrained by the cost of living and elevated mortgage rates. But with build cost inflation easing, planning reform expected to unlock stalled sites, and the Government's social and affordable homes programme aligning closely with its multi-tenure model, the company believes its resilient business model and deep land pipeline leave it well placed to scale delivery and grow into the coming years.

This article is based on Keepmoat Homes Limited's Annual Report and Financial Statements for the year ended 31 October 2025 (registered number 02207338). Figures are as reported by the company. Keepmoat Homes Limited is a wholly owned subsidiary within the Maison Holdco Limited group.