Housebuilder Telford Homes has posted a 35% leap in annual profit, beating market expectations following strong demand for its homes in London and its expansion into the build to rent sector.

Telford Homes' City North development in Finsbury Park, London

Source: Telford Homes

The rise in pre-tax profit to £46m, compared to guidance from the company in April for a rise of ’more than 30%.

Telford Homes said it expected to exceed £50m in pre-tax profit for the year to 31 March 2019, representing a 100% increase over four years.

It declared a final dividend of 9p per share, bringing the total dividend for the year to 17p, up 8% on the previous year.

Jon Di-Stefano, chief executive of Telford Homes, said: “As we increase the scale of the business, our growth is underpinned by the undersupply of new homes in London and robust demand at more affordable price points, particularly for rental housing.

”Our substantial development pipeline and increasing expertise in the burgeoning build to rent sector provide us with confidence for the future.

”I believe our increased focus on build to rent will drive the next phase of our growth and allow us to consistently deliver total pre-tax profits in excess of £50m.”