In the face of a challenging year for many in the kitchen manufacturing industry, the UK’s number one furniture supplier to independent kitchen retailers, Omega invested in their future throughout 2023 with a comprehensive new development programme including, the introduction of new brand Novus, new door ranges, on trend paint
Contracts Awarded for construction projects in the UK fell £11.1bn to £69.2bn in 2023, a 14% reduction from a record £80.4bn in 2022, according to the latest analysis from construction analysts Barbour ABI. Sectors hit by the cost-of-living crisis were particularly affected with residential housebuilding down 14%, commercial developments down
Lending for commercial construction is expected to fall for the ninth year in a row, underlying how demand for office space and high street retail has declined over the period. The analysis comes from specialist property lending experts, Octane Capital, which compared lending levels across different areas of the property
Select Property, a leading developer, operator and investment specialist, has secured a £44.5 million development finance facility from Close Brothers to bring forward its first Affinity Living build-to-rent development in Birmingham. The leading UK merchant banking group has provided the facility to support Select Property as it ramps up development
A mixed-use development in Molesey, Surrey, has been rejuvenated by Odyssey Developments thanks to a seven-figure property development loan from Secure Trust Bank (STB) Real Estate Finance. The property, located within Greater London, is a commercial-residential hybrid with a florist on the ground floor and two, two-bedroom flats above. Molesey,
Derek Horrocks, chair of the National Home Decarbonisation Group, said: “This announcement is another incredibly positive step towards decarbonising the housing stock up and down the country – and one we welcome with open arms at the NHDG. “We’re pleased to see that along with the public sector, private
Wakefield-based granite and quartz worktop supplier, Roann Limited, is on track to achieve a record-breaking turnover in 2023, thanks to successfully securing three new projects. Roann Limited has been appointed by some of the UK’s largest house builders to provide its bestselling Silestone worktops to three new developments, which have
Development and regeneration company, Cityheart has acquired the 442-home Royal George Village site on Greek Street in Stockport, continuing its commitment to the transformation of Stockport town centre. Cityheart secured the site following the withdrawal of previous developer Investar Property Group, which had originally been appointed as the developer in
Seventy Ninth Group, an asset management company headquartered in North West England, has agreed terms to purchase two holiday parks for acquisition and subsequent redevelopment. Set in exclusive locations in Scotland, the Seventy Ninth Group plans to build up to 700 holiday lodges which will feature on site dining, as
Research by Yopa, the award-winning national estate agency, has revealed that the total value of the property market across England is estimated to have climbed by £1.6tn as a result of the pandemic property market boom, driven by a 25% increase in the average value of a home. Yopa analysed
In the face of a challenging year for many in the kitchen manufacturing industry, the UK’s number one furniture supplier to independent kitchen retailers, Omega invested in their future throughout 2023 with a comprehensive new development programme including, the introduction of new brand Novus, new door ranges, on trend paint colours and the launch of a custom panel service. Omega CEO Simon Barber said, “2023 was an exciting year for Omega with the launch of Novus, many great new product developments across our brands and a range of initiatives designed to support our retail and contracts partners. As a business we continually look to the future believing investment in product, technology and people is what drives us forward. The start of 2024 will see the completion of a £1 million project to improve our sales processes to benefit both our contracts and retail customers.” Once complete the investment will deliver an even more efficient service solution for all customers and a bespoke commercial system for contracts partners. Novus is the modern leading-edge solution in handless kitchens characterised by a clean, and sleek aesthetic, manufactured in the UK. The minimalist kitchen was designed to compete with the handless kitchen trends established by European suppliers and offer customers flexibility and choice whilst ensuring ease of installation and guaranteed delivery. Speaking about the launch Omega Retail Sales Director James Bishton says, “It’s exceeded the expectations of both our new and existing customers who are looking for a UK sourced option for contemporary kitchens. Without exception all prospective customers visiting Omega for the first time to see the brand, showroom and facility wish they’d done so sooner.” Omega have expanded on the launch phase of Novus with the introduction of Custom Size Panels across all of their brands, allowing customers to order the specific panel requirement to suit any design giving them greater flexibility, reduced waste on site and lower costs. James Bishton continues, “Novus has helped us capture new customer sales and seize market share since its launch in Summer 2023. Our new partners have also successfully engaged with our existing painted shaker kitchens, to widen their own offers aligned to core UK market trends.” Commenting on the impact of Novus on the Contracts Market Omega Contracts Sales and Operations Director Katy Snow said, “Since the launch in May 2023, Novus has generated great interest from our contract developers on both housing developments and Major Project apartment schemes, including Berkeley Eight Gardens Development the first to showcase Novus in volume. Novus differentiates our contract customers from other developers in their area which demonstrates a value-added proposition to potential home buyers. Omega’s robust supply chain, large stock holding and excellent design and manufacturing capabilities in the business has also supported several new customers from site takeovers delivering kitchens on very short lead times.” In support of their customers, in October 2022, Omega pledged that their prices would remain fixed for 16 months providing partners with much needed price stability during a time of economic uncertainty and challenges. The latest announcement sees that price freeze extended until 5th April 2024. Building, Design & Construction Magazine | The Choice of Industry Professionals
Contracts Awarded for construction projects in the UK fell £11.1bn to £69.2bn in 2023, a 14% reduction from a record £80.4bn in 2022, according to the latest analysis from construction analysts Barbour ABI. Sectors hit by the cost-of-living crisis were particularly affected with residential housebuilding down 14%, commercial developments down 15% and Hotel and Leisure falling dramatically by 29%. A lack of confidence in the market was also reflected in applications for new construction projects, which fell by 16% to under £100bn. Housing applications are now 21% down on pre-pandemic levels. Barbour Consulting Economist Kelly Forrest commented: “2023 was challenging for the UK construction sector. In addition to viability challenges from higher construction costs and borrowing rates, consumers and business confidence remained weak. 2023’s good news stories were largely confined to the public sector as the government’s flagship school and hospital building programmes finally started to build some momentum amid moderating cost inflation and mounting political pressure.” Barbour ABI found that education awards bounced back to £6.1bn in 2023, a 20% uplift compared with 2022, and a 19% increase from 2019. Meanwhile, Healthcare beat 2022 by 4% and is now 160% higher than pre-pandemic levels. Forrest continued: “Overall weakness concealed pockets of buoyant sub-sector activity. Energy was a particular bright spot as investment poured into energy from waste and energy storage facilities, along with offshore wind.” Infrastructure Infrastructure spending, including government-funded projects, remained an important crutch for the industry in 2023. Contract awards fell 22% to £15.2bn but remained 47% higher than in 2019. Energy projects were a big driver. Windfarms, battery storage facilities and large waste-to-energy contracts all helped maintain awards momentum. Meanwhile, applications remained 62% higher than pre-pandemic levels and analysis of demand side approvals, still double pre-pandemic levels, suggests infrastructure will continue to perform in 2024. Looking ahead Forrest concluded: “In early 2024 there are a few reasons to be optimistic. Interest rates are likely to have peaked and inflationary pressures have eased markedly. Entering what is very likely to be an election year there is a risk there will be a hiatus in public sector investment as key decisions are postponed. The speed and resilience of the private sector recovery will be pivotal.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Lending for commercial construction is expected to fall for the ninth year in a row, underlying how demand for office space and high street retail has declined over the period. The analysis comes from specialist property lending experts, Octane Capital, which compared lending levels across different areas of the property construction industry over the past decade using data from the Bank of England. Octane then estimated where total lending would sit come the end of 2023 based on the current data available (Jan to November). The analysis shows that the average monthly amount outstanding across the commercial construction lending sector has gradually fallen from £5.11 billion in 2014 to £3.383 billion in 2022, a drop of 34%. Octane Capital estimates that 2023 will see this figure fall by a further -2.6% in 2023 to £3.30 billion, following on from an annual decline of -4.3% in 2022 and a minor reduction of -0.8% in 2021. Rental recession and challenging year for retail Last year office rentals in London were said to be in “rental recession” due to the number of empty workspaces, as the pandemic has facilitated a growing work from home and flexible working culture. Meanwhile the high street has struggled to compete with the growth of online retail for some time, while consumers are currently being squeezed by the cost of living crisis. In January the The British Retail Consortium warned that retailers are set for a “challenging” year in 2024 due to “weak consumer confidence. Overall construction lending dips for second consecutive year The analysis by Octane Capital also shows that lending across the construction sector as a whole is forecast to fall for a second consecutive year in 2023, as interest rate rises made borrowing gradually less affordable. Octane Capital estimates that the average monthly total of outstanding lending will reach £33.26 billion in 2023, marking a -7.1% drop from the year before, while in 2022 there was also a drop, at -4.0%. The second consecutive annual decline follows the Bank of England base rate hike from 0.25% to 5.25% between December 2021 and August 2023, making the cost of borrowing far more expensive for construction and development firms. Development down but domestic construction sees uplift Commercial lending for the development of buildings – which encompasses structural alterations, demolitions and rebuilding – has been on the steady decline since 2021. Octane Capital estimates that some £12.74 billion of outstanding lending will be recorded in 2023, which will again result in a drop of -7.9%, following previous yearly falls of -5.3% in 2022 and -4.3% in 2021. Lending for domestic construction – a dwelling where more than one family unit lives – is the only construction type expected to go against the grain. After dropping off by -19.8% in 2021 it recovered by 9.2% in 2022, and is estimated to climb by 1.7% in 2023, as is forecast to sit at £6.04 billion for the year. CEO of Octane Capital, Jonathan Samuels, commented: “Demand for commercial construction lending has seen a consistent decline in recent years, with the average monthly amount outstanding falling by 34% between 2014 and 2022 and expected to fall further in 2023. “While the pandemic accelerated the trend for more businesses to embrace hybrid working, it must have come as a shock to the office sector, as it’s ultimately businesses paying competitive rents that justify these construction projects. “Another factor hitting construction is the cost of financing, as it’s becoming harder for developers to make a good return on their investment given that interest rates are relatively high. “One positive is that interest rates now look to be falling again, so it could become more affordable for developers to fund projects in 2024 and beyond, which should help cultivate some growth, albeit this will likely remain subdued versus historic highs.” Data tables and sources Data tables and sources can be viewed online, here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Select Property, a leading developer, operator and investment specialist, has secured a £44.5 million development finance facility from Close Brothers to bring forward its first Affinity Living build-to-rent development in Birmingham. The leading UK merchant banking group has provided the facility to support Select Property as it ramps up development of its new 266-unit property, Affinity Living Lancaster Wharf. Due to complete in Q3 2025, the build-to-rent specialist has already sold out Lancaster Wharf’s apartments to investors, securing £77 million in sales. Located just a 10-minute walk from Snow Hill Station and Colmore Row, it is Select Property’s first Affinity Living residence in Birmingham, having established a strong reputation across its four existing properties in Manchester. Its ethos focuses on providing high-quality, community-led and resident-centric homes in the heart of some of the UK’s most vibrant regional cities. In a recent survey of its 1,300 residents across its four Affinity Living properties in Manchester, 75% said they would choose to stay at Affinity Living when their tenancy came to an end, showcasing the strength of the brand’s offering. Close Brothers has supported Select Property on a number of projects over the last decade, including Affinity Living Riverside and Riverview in Manchester. Adam Price, CEO at Select Property, said: “We are very proud of the Affinity Living experience that we have created and developed in Manchester city centre. Given its success, we knew it was the right time to bring our proposition to new markets and Birmingham was the perfect place to do so given the continued growth of its young professional population. “Our new property at Lancaster Wharf will provide best-in-class rental homes in an unrivalled location with community at its heart, so we have no doubt that resident demand will mirror the demand we have seen from investors for this development. “Close Brothers has been an invaluable partner to us in this project, working quickly to provide us with the support we need to see the development through to completion.” Simon Powell, Director at Close Brothers, added: “We have worked with Select Property for many years and have forged a strong relationship with their highly experienced team, and are delighted to be supporting them on yet another fantastic scheme. Situated within an area of major regeneration, Lancaster Wharf will provide much-needed, high-quality apartments for the rental market that will complement the ongoing improvements in the wider area. “We have supported housebuilders and developers for over 40 years and look forward to continuing to do so over the coming years with experienced partners like Select Property.” Building, Design & Construction Magazine | The Choice of Industry Professionals
A mixed-use development in Molesey, Surrey, has been rejuvenated by Odyssey Developments thanks to a seven-figure property development loan from Secure Trust Bank (STB) Real Estate Finance. The property, located within Greater London, is a commercial-residential hybrid with a florist on the ground floor and two, two-bedroom flats above. Molesey, situated on the south bank of the River Thames, is just minutes from Hampton Court Palace, and takes 35 minutes to reach central London via train. The second floor of the building was recently added using STB’s loan, alongside a further two detached houses built on the remainder of property’s land. The deal was agreed thanks to STB’s approachability and thorough understanding of the real estate market. Signed under an 18-month term, the loan itself is structured as one of STB’s popular residential property development loans, used to support with the heavy refurbishment of residential development sites. STB Relationship Director, Paul Scagliosi, orchestrated the deal with Odyssey Developments, with a LTGDV of 59% and a 74% LTC, taking just six weeks to complete. John O’Neil, Director at Odyssey Developments, said: “It’s important for us at Odyssey Developments to have a trusted financial institution that understands our needs and is able to turn around the necessary requirements and funding for a project in a speedy manner. Secure Trust Bank executed this superbly. “Our new build houses which were constructed through the less desirable autumn and winter months were fully completed and sold in 26 weeks with no delay or overrun. Much of this was only achievable due to our close working relationship with STB. “Our appreciation and gratitude go out to those personnel at STB who worked so closely with us on this very successful project. We look forward to working with STB again soon, on our next housing proposal.” Paul Scagliosi, Relationship Director at STB Real Estate Finance, said: “This development has been rewarding and very fun to work on. We have come away with a great working relationship, and four high-quality homes within touching distance of London. John and the team at Odyssey are brilliant to work with, exceptionally skilled at what they do and are all-round nice people. The tailored approach and process was smooth given its complexity, and I’m glad we were able to contribute to a great, practical development.” For more information about Secure Trust Bank Real Estate Finance, please visit https://www.securetrustbank.com/business-finance/real-estate-finance Building, Design & Construction Magazine | The Choice of Industry Professionals
Derek Horrocks, chair of the National Home Decarbonisation Group, said: “This announcement is another incredibly positive step towards decarbonising the housing stock up and down the country – and one we welcome with open arms at the NHDG. “We’re pleased to see that along with the public sector, private owner-occupier and private landlords will benefit from this funding, with an extra £1.5 billion for the Boiler Upgrade Scheme, and a new energy efficiency grant providing £400m to households in England. “The extra funding for the Boiler Upgrade Scheme gives the opportunity to tie this £7,500 offering into whole-house decarbonisation proposals for householders, which alongside ECO for fabric measures should create an attractive large-scale offering. This is alongside multiple other heat transformation schemes, and a new £500m local authority retrofit scheme to support 60,000 low-income and cold homes, including those off the gas grid. “Meanwhile, we’re especially pleased to see £1.25 billion for the Social Housing Decarbonisation Fund within the funding, which will be match-funded to create £2.5 billion between 2025 and 2028. This is something we called for in the Autumn Statement and will give us that longer term to develop the area-based approach and use the economies of scale it affords. “The past five years have seen more government investment in decarbonisation than ever before. Excellent progress has been made, with nearly 50% of properties in England now having an Energy Performance Certificate (EPC) of C – up from just 14% in 2010. The government has now committed to spend £12.6 billion by 2028, a move that will genuinely make a difference to thousands. “Since our inception earlier this year, we made a concerted effort for this funding to be committed to, by writing directly to the Prime Minister, as well as making a request for this ahead of the Autumn Statement. We firmly believe that the decarbonisation of homes is about so much more than achieving net zero but rather it is also about supporting millions of people facing the impacts of the cost of living, energy, and health crises, which this announcement highlights. “This funding will provide the all-important long-term certainty for businesses within the sector too. This is again something we have spoken publicly about in recent months and called on the Prime Minister himself to assure. With more than £12 billion now committed, industry can be confident in making the investments needed for innovation and expanding the supply chain that will deliver this critical work. “As a group, we know the power we have together, with an estimation that 80% of the large-scale domestic retrofit in the UK will be carried out by our members. In 2024, we know we have a huge opportunity to work closely with the government on shaping policy through our growing partnership with DESNZ. Our working groups are established and already working towards achieving real outcomes together, and we look forward to continuing our position as a key driver for net zero – and of social change too.” To learn more about the NHDG, its aims and its members, please visit the website at: https://www.nhdg.org/ Building, Design & Construction Magazine | The Choice of Industry Professionals
Wakefield-based granite and quartz worktop supplier, Roann Limited, is on track to achieve a record-breaking turnover in 2023, thanks to successfully securing three new projects. Roann Limited has been appointed by some of the UK’s largest house builders to provide its bestselling Silestone worktops to three new developments, which have a combined value of £180,000, with the potential for this amount to increase by up to 20% with upgrades. Among the projects is Highcroft, a Oxfordshire-based development of 33 new build homes by St Joseph Homes (a division of Berkeley Group), and Lime Grove, a Lincolnshire-based development by Bowbridge Homes, which includes a total of 68 new build homes. Roann Limited has also been selected as the exclusive worktop provider for Sunbeam, a former factory in Wolverhampton which is being converted into 180 modern apartments by Kuche Contracts. Silestone, a sustainable surface containing a minimum of 20% recycled materials, is made using 100% renewable electrical energy and 99% recycled water. The worktops are extremely hard-wearing, making it an ideal choice for contemporary family homes. The company’s success in securing these projects is testament to its unrivalled focus on quality, innovation and client satisfaction. As the year draws to a close, Roann Limited is poised to celebrate a record-breaking turnover and financial year, reflecting the company’s sustained growth and prominent position in the kitchen worktop manufacturing industry. “We are thrilled to announce our recent success in securing three new projects,” said Scott Wharton, Operations Director at Roann Limited. These accomplishments affirm our commitment to delivering high-quality worktop solutions to our clients, whilst positioning us for our most successful year to date. It’s a very exciting time for us here.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Development and regeneration company, Cityheart has acquired the 442-home Royal George Village site on Greek Street in Stockport, continuing its commitment to the transformation of Stockport town centre. Cityheart secured the site following the withdrawal of previous developer Investar Property Group, which had originally been appointed as the developer in 2022. Royal George Village is the largest purpose built apartment development in Stockport and has a GDV of £120m. Following the acquisition Cityheart made an immediate start on site with PP O’Connor commencing enabling works on the day the purchase completed. The scheme is part of the 130-acre regeneration district Town Centre West, which is being driven forward by Stockport Mayoral Development Corporation (MDC). The district will deliver 4,000 new homes, alongside local amenities, green spaces, new workspace and radical transport improvements, transforming Stockport into the most liveable and well-connected town in Greater Manchester. A £9m GMCA brownfield grant has been secured to support the delivery of the scheme which was previously part of the Stockport College campus. Cityheart is now procuring a contracting partner for the first phase of the scheme and will commence demolition and construction works in mid December, the full scheme is scheduled for completion in 2026. Jonny Wrigley group chief executive of Cityheart comments: “Royal George Village is one of Stockport’s most important residential opportunities and we are proud to be bringing these much-needed contemporary homes forward, further enhancing the quality of housing in Stockport town centre. Since topping out our 196 apartment scheme with our joint venture partner Rise Homes at Stockport Interchange in May, we have been keen to contribute further to the regeneration of Stockport and investing in Royal George Village provides the ideal opportunity to continue our relationship with the town. “We have made an immediate start on site and will implement a rapid build programme to deliver these high quality new homes at Royal George Village which will be a key contributor to Stockport’s ongoing renaissance.” Eamonn Boylan, interim chair of Stockport MDC said: “Delivering more, high quality homes for local people to live in the town centre is where true regeneration starts – we then start to see the positive impact on our high streets, in our retail centres, and we create a larger workforce which attracts businesses and drives forward the town’s prosperity. 2023 has seen significant progress to Stockport’s £1billion town centre regeneration, and, as we look ahead to what is set to be a monumental year with the completion of a number of our landmark developments, we look forward to working with the team at Cityheart to deliver these essential new homes for Stockport.” The regeneration of the three-acre site on Greek Street and six neighbouring buildings will see the former college campus redeveloped into a mixed-use scheme which includes 442 apartments both for sale and rent. The 115,000 sq ft Torkington Building will be converted into 122 apartments, while the 60,000 sq ft Lyme Centre would be demolished and replaced with a 16-storey apartment block comprising 258 units. The grade-two listed Greek Street Building – the former Metropolitan Girls’ School – will be converted into collaborative co-working space for local businesses. In addition, a new-build six-storey ‘Gateway’ building will be constructed providing 62 apartments at the corner of Greek Street and Royal George Street with off plan sales set to launch in Q2 2024. The Hexagon lecture hall, located close to the grade two-listed War Memorial Art Gallery, is set to be demolished and replaced with public realm and civic space. The 16,000 sq ft University Centre building will also be demolished to provide an internal, south-facing courtyard to create additional public open space and private gardens for residents. Original architects, DAY Architectural has been retained to work on the new scheme. Beyond Corporate has provided legal support during the acquisition. Building, Design & Construction Magazine | The Choice of Industry Professionals
Seventy Ninth Group, an asset management company headquartered in North West England, has agreed terms to purchase two holiday parks for acquisition and subsequent redevelopment. Set in exclusive locations in Scotland, the Seventy Ninth Group plans to build up to 700 holiday lodges which will feature on site dining, as well as modern health and spa facilities. The two projects have a gross development value (GDV) in excess of £300 million combined. Once built, the lodges will be offered for sale at a starting price of £200,000.00. Seventy Ninth Group specialises in the acquisition and redevelopment of undervalued assets across its core sectors of real estate and natural resources. The redevelopment of holiday and leisure parks is just one of key market sectors in real estate for the company. The other sectors include residential and commercial office parks. The Group is owned by the Webster family, who hold a unique position in both the real estate and natural resource sectors, specialising in the acquisition, management and development of high growth assets with a focus on deploying sustainable investment strategies. Managing Director of the Group, Jake Webster, says; “We are delighted to be able to add this latest acquisition to our portfolio. The leisure sector has been a significant area for growth for us as we look to redevelop these two sites into luxury leisure accommodation. “The nature of the UK staycation market is evolving. Expectations are growing around the quality of accommodation and facilities expected on site with many holiday makers seeking a luxury experience. “Investment is key to operators who want to compete in this luxury space as they look to upgrade, refurbish and expand their offering. For investors this means there is a real opportunity for long term, stable returns. “ The Seventy Ninth Group is an award-winning asset management company headquartered in the United Kingdom. Founded by serial entrepreneur David Webster and his two sons, Jake and Curtis Webster. The Seventy Ninth Group holds a unique and advantageous position in both the real estate and natural resource sectors, specialising in the acquisition, management and development of lucrative assets during times of economic turmoil and uncertainty. A family-owned business, the Seventy Ninth Group is chaired by David and his sons, Jake and Curtis, along with an experienced board of directors most of whom derive from a banking & compliance background. The Seventy Ninth Group is renowned for its strong family values of loyalty, honesty, and reliability, and is respected by their clients globally. Forward Looking Information This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but are not limited to, information concerning the Company identifying an appropriate business combination target and its future plans for pursuing a stock exchange listing in Canada. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward- looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward- looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward- looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice. Building, Design & Construction Magazine | The Choice of Industry Professionals
Research by Yopa, the award-winning national estate agency, has revealed that the total value of the property market across England is estimated to have climbed by £1.6tn as a result of the pandemic property market boom, driven by a 25% increase in the average value of a home. Yopa analysed the total value of the bricks and mortar market based on the total number of dwellings and the average value of a home, looking at how both have changed since the market went into overdrive during the pandemic. National look The research shows that in December 2019, prior to the pandemic, the average home across England was worth £248,097. With some 24.4m dwellings found across England in 2019, this put the total estimated value of the property market just shy of £6.1tn. Fast forward to today, and the average house price has climbed by 25%, now sitting at £309,602. There has also been an increase in the number of homes, albeit more marginal at 1.9%, although this still equates to an increase of 459,191. As a result, Yopa estimates that the total value of the property market currently stands at £7.7tn, an increase of £1.6tn (27%) since the start of the pandemic. National look The research shows that in December 2019, prior to the pandemic, the average home across England was worth £248,097. With some 24.4m dwellings found across England in 2019, this put the total estimated value of the property market just shy of £6.1tn. Fast forward to today, and the average house price has climbed by 25%, now sitting at £309,602. There has also been an increase in the number of homes, albeit more marginal at 1.9%, although this still equates to an increase of 459,191. As a result, Yopa estimates that the total value of the property market currently stands at £7.7tn, an increase of £1.6tn (27%) since the start of the pandemic. Regional increases The South East has seen the largest jump in the total value of the region’s property market, increasing by £311bn as a result of the pandemic property market boom. Despite the capital underperforming compared to the rest when it comes to pandemic house price growth, the London market is worth some £251.3bn more today versus the pre-pandemic market in 2019. While the North East has seen the smallest increase in total market value, the region’s bricks and mortar market is still worth £45bn more today versus the 2019. Local authority look Cornwall ranks top at local authority level, with £24.3bn added to the value of the Cornish property market as a result of the pandemic, no doubt driven by those looking to escape city life during lockdown restrictions. Buckinghamshire (+£23.4bn), Birmingham (+£22.2bn), Leeds (+£21.4bn) and North Yorkshire (+£20.1bn) have also seen some of the largest monetary increases in the value of their respective property markets since the start of the pandemic. CEO of Yopa, Verona Frankish, commented: “With all the current doom and gloom surrounding the property market it’s quite easy to forget that we’ve just witnessed one of the most sustained periods of house price growth in living memory. “So while higher mortgage rates and buyer uncertainty may have dampened the current rate of house price growth, this reduction is just a drop in the ocean compared to the meteoric increases seen since the start of the pandemic property market boom. “To think that the bricks and mortar market across England is estimated to be worth £1.6tn more compared to just a few years ago is quite incredible and it really does demonstrate the strength of the property market when viewed on a long-term basis.” Sources Average house price data sourced from the Gov – UK House Price Index – December 2019 vs September 2023 – latest available) Dwellings stock levels sourced from Gov – Subnational estimates of dwellings by tenure, England (2019 vs 2021 – latest available) Total market value based on dwellings stock multiplied by the average house price in each area Full breakdown of England by each local authority available via the link below. Data tables and sources can be viewed online, here. Building, Design & Construction Magazine | The Choice of Industry Professionals
