Cairn Homes: Surge in first time buyers drives record revenue

Irish housebuilder Cairn Homes has seen its revenue hit record levels due to a surge in demand among first-time buyers.

The company generated revenue of approximately €365m (£309m) in the six months ended June 30, 2024, up 66 per cent from €220m (£186m) during the same period the year before, according to a trading update published today.

In that time Cairn delivered a total of 894 homes and launched its first developments in Kilkenny (Nyne Park) and Cork (Bayly) respectively.

It also increased its order book to around 3,100 new homes with a net sales value of nearly €1.2bn (£1bn).

The company added that it had seen “exceptional” demand for new energy-efficient homes across all of its buyer profiles.

CEO Michael Stanley said: “Cairn experienced a very strong spring sales season for first time buyer homes, which has added to our order book of over 3,000 homes.

“We will grow our output by 30 per cent this year and invest heavily in 10 new site commencements, including eight in the second half of 2024.

“Recent data on increased mortgage approvals for first time buyers is positive news and the broader homebuilding industry is also responding to improved realisable demand by increasing the supply of new family homes. 

“The current ill-health of the rental market perhaps remains a greater challenge for our economy and growing population.

“In recent years, more than 70,000 homes previously for private rental are no longer available, the majority having been purchased by homebuyers from smaller landlords exiting the market.

“Privately funded replacement stock, particularly apartments in urban areas has been very low and as a result, many of Ireland’s young and fully employed population are faced with a shrinking and illiquid rental market.

“The Government has responded with stronger support for AHBs and the LDA, through CREL funding, resulting in increased commencements of new cost rental apartment developments.

“A committed implementation of this initiative, together with Croí Cónaithe and student accommodation funding, can significantly boost the delivery of affordable and private scaled apartment developments for both ownership and rental.”

Separately this morning, the company also announced a €45m (£38m) share buyback programme.