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Tue June 15 2021

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Gleeson sends three in four home

6 Apr 20 Low-cost housing developer MJ Gleeson has suspended all building works and furloughed three-quarters of its employees.

A total of 456 MJ Gleeson employees, representing 76% of the workforce, are furloughed in line with the government's Job Retention Scheme, with the company topping-up the remaining 5-20% of salaries.

All Gleeson board members taking a reduction in salary/fees of 30% and senior managers are taking reductions in salary of between 5% and 20%, weighted according to salary bands. These measures will be reviewed at the end of May.

A key priority, the company said, is “to reopen sites and sales offices once it is appropriate and safe to do so and our focus now turns to putting in place a programme to ensure as efficient a re-start as possible immediately the resumption of trading is permitted”.

It said: “We are keen to work with central government and local authorities to agree what provisions might be put in place to enable the safe resumption of building much-needed quality affordable homes as soon as it is practicable to do so.”

Gleeson’s target market is first-time buyers in the Midlands and north of England on average or lower incomes. Two-thirds of the homes that it sells are to people in what are now designated key worker roles. These people will now get first dibs on Gleeson homes when the lockdown ends.

“In recognition of their extraordinary efforts in keeping us all safe, fed and healthy the board has decided that, when the company is able to recommence site build activities, it will prioritise house sales to key workers,” it said.

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