Galliford Try predicts increase in new houses

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The group said prices had remained firm and that it was ahead on sales, particularly in the South-East, with £443 million compared with £400 million last year.

In construction, Galliford said it was performing to expectations, despite a challenging market, reporting an order book of £1.8 billion, up on £1.7 billion last year.

"Although we remain in a period of economic uncertainty, the group's finances are robust and we remain confident that we are on track to deliver our transformational housebuilding expansion plan," said chief executive Greg Fitzgerald.

The group has increased its number of active selling sites to 60 from 54 and reported an upturn in its affordable housing contracting business.