The latest industry research by property development appraisal software, APRAO, has revealed that developers across the South East have been hardest at work making way for future new homes, with the region seeing the largest number of demolitions over the last year, as well as the second largest annual increase.
Miller Homes and Citra Living, which is part of Lloyds Banking Group, have joined forces to deliver 100 Private Rented Sector homes at Miller Homes’ Roman Croft development in Priorslee, Telford. Working together they will provide much needed additional new homes for open market rent which will help to meet
Glenigan, one of the construction industry’s leading insight experts, releases the April 2024 edition of its Construction Index. The Index focuses on the three months to the end of March 2024, covering all underlying projects, with a total value of £100m or less (unless otherwise indicated), with all figures seasonally
Construction contract rewards remained stable in March following a quarter which had showed a significant increase since the beginning of the year. The value of new contracts was 3% down in February and 1% down on the previous year but remained significantly above the last quarter of 2023, according to
The latest industry research by property development appraisal software , APRAO, has revealed that all but one of the big housebuilders has seen a reduction in the volume of land banking plots held on an annual basis. APRAO analysed the latest annual reports of the seven major UK property developers,
Funding has been secured by Sempra Homes for the delivery of the Markhams Chase development in Basildon. The development of three, contemporary two-bedroom houses will be delivered in partnership with One Public Estate under the Government’s Brownfield Land Release Fund (BLRF) programme. Melanie Keys, Services Manager at Sempra Homes commented:
Last-minute amendments to the Renters (Reform) Bill designed to appease some Tory backbenchers will make ‘little material difference’ to the majority of landlords or tenants, according to the managing director of client accounting and automated rental payment specialists, PayProp UK. Neil Cobbold, who has closely followed the progress of the
The latest analysis from quick sale specialists, Open Property Group, has revealed that despite enjoying strong rental income growth on an annual basis, the average buy-to-let investor has reduced the size of their portfolio by as much as -27% across England and Wales. Open Property Group analysed the latest data
The Royal Town Planning Institute (RTPI) has expressed its support for the government to build more homes on brownfield land. However, the Institute warns that new urban brownfield schemes must be closely monitored to ensure residents are not landed with poor quality homes or poorly planned developments that people wouldn’t
Easter weekend will mark the launch of a unique retrofit development in Devizes, Wiltshire. Designed to offer a more sustainable way of life, Marlborough Close by Annington will bring to the market just five four-bedroom homes, each having been carefully refurbished to become smarter and more efficient. Each home at
The latest industry research by property development appraisal software, APRAO, has revealed that developers across the South East have been hardest at work making way for future new homes, with the region seeing the largest number of demolitions over the last year, as well as the second largest annual increase. APRAO analysed Gov data looking at the number of demolitions to have taken place over the last year* across England and which areas of the property market have seen the largest increase in demolitions as developers look to make way for the construction of new-build housing. The analysis by APRAO shows that some 5,474 demolitions took place over the last year, a drop of -4.5% versus the previous year and the lowest annual total seen over the last 15 years. This suggests an air of hesitation amongst the big housebuilders to clear ground in order to deliver new homes, having faced a landscape of higher interest rates, cooling house prices and subdued buyer appetites due to higher borrowing costs. However, this decline in demolitions isn’t a trend that has engulfed the entire property market and, in fact, some areas have seen a sharp increase. With 1,729 demolitions taking place over the last year, the South East ranks as the nation’s demolition hotspot. The region has also seen this number climb by 39% year on year, the second highest annual increase of all regions. However, it’s Yorkshire and the Humber that has seen the largest annual increase, with the number of demolitions seen across the region climbing by 53% year on year. The North West (+32%) and East Midlands are the only other two regions to have seen an uplift in developer demolitions. Of those to have seen a decline, London has seen the largest reduction, with -58% fewer demolitions taking place over the last year versus the year before. CEO of APRAO, Daniel Norman, commented: “The demolition of existing structures is often the first step in the development journey and, as a result, demolition data can give us key insight into just where housebuilders are moving forward with their plans to deliver new homes. This can be done to make way for new homes specifically, as well as the required infrastructure required for a development, or even for a commercial venture. What the data does highlight is that the volume of demolitions has fallen considerably over the last 15 years, although the decline seen over the last year has certainly been intensified by wider economic headwinds such as higher interest rates and a decline in buyer activity. However, this trend hasn’t been seen at a national scale and based purely on demolition levels alone, Yorkshire and the South East certainly look poised to see an influx of new homes over the coming years.” Sources and data tables View the full data tables and sources online here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Miller Homes and Citra Living, which is part of Lloyds Banking Group, have joined forces to deliver 100 Private Rented Sector homes at Miller Homes’ Roman Croft development in Priorslee, Telford. Working together they will provide much needed additional new homes for open market rent which will help to meet the significant demand for high-quality rental properties. The 100 homes for Citra at Roman Croft are being developed with environmental sustainability in mind. Every house is entirely gas-free, using an air source heat pump for heating, and is equipped with an electric vehicle charger. They will be delivered in two phases, with 46 in the first phase and 54 in the second, and handover of the homes is expected to be completed by July 2026. Danny O’Connor, Divisional Managing Director at Miller Homes, said: “We are pleased to have agreed a deal with Citra Living to deliver 100 homes for the private rented sector in Priorslee, and hope this forms the foundation for many more in the future. “Miller Homes’ Roman Croft development offers residents a blend of thriving town life and picturesque countryside living, with easy access to both Wolverhampton and Birmingham, and the Shropshire Hills on the doorstep.” Matthew Bench, Group Managing Director – Partnerships at Miller Homes, said: “Building Private Rented Sector homes as part of our business model, like these for Citra Living, allows us to continue diversifying our portfolio, while creating new opportunities for land acquisition and supporting our overall growth ambitions to 6,500 homes per year.” Andy Hutchinson, CEO of Citra Living, said: “Working with Miller Homes to deliver these more energy efficient new homes supports the delivery our goal to help more people live in the place they want and in the kind of modern home they want to live. “By teaming up with experienced, forward-thinking housebuilders, like Miller, we can bring more, better quality homes in great locations to the market more quickly.” Roman Croft, and the neighbouring Earl’s Grange development, both at Priorslee, offer easy access to the A5 and M54 motorway and are just 5 minutes from Telford town centre. Fantastic local amenities including Telford Central Rail Station and Priorslee Lake are on the doorstep. The wider Priorslee site covers over 75 acres which will provide 1,100 homes. The community will benefit from new amenities including a new community building, a primary school, a local retail centre, a retirement village and land made available for a new GP surgery, as well as football pitches and a skate park. Building, Design & Construction Magazine | The Choice of Industry Professionals
Glenigan, one of the construction industry’s leading insight experts, releases the April 2024 edition of its Construction Index. The Index focuses on the three months to the end of March 2024, covering all underlying projects, with a total value of £100m or less (unless otherwise indicated), with all figures seasonally adjusted. It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months. The April Index paints a decidedly gloomy picture, in line with the persistent decline across the construction sector. Again, project-starts are down against the previous Index period and the previous year. Ongoing pressure on household budgets, coupled with economic uncertainty, continues to negatively affect consumer confidence. This has led to unease among investors, significantly delaying project-starts across the UK, as they wait for stability to return. Against this backdrop of socio-political disruption and a looming General Election, starts remain significantly lower than last year for a third consecutive month. The situation is unlikely to change in the short term, as the industry struggles to get back on its feet whilst being continuously battered by harsh headwinds. Commenting on the results, Glenigan Economist, Drilon Baca, says, “Unsurprisingly, our latest data shows project-starts remain low, with continued economic uncertainty leading to market stagnation, prolonging delays across the industry. Like the March Index, we haven’t seen the traditional ‘spring uptick’ boost starts this month. Investor confidence is at an all-time low, resulting in a general reluctance to move projects to site. The situation is likely to persist until the autumn when a new Government is in place and conducts a long-anticipated spending review. “However it’s not all doom and gloom, there are some glimmers of hope on the horizon, with a number of non-residential verticals showing signs of improvement, including Community & Amenity, retail, and health, all of which were up on last year. Regionally, Northern Ireland was the standout area, posting growth against both periods. Taking a closer look at the sector verticals and regional outlook… Sector Analysis – Residential Residential construction experienced overall decline in the three months to March as starts fell 27% against both the preceding period and 2023 figures. Continuing on a downward trajectory, social housing performance was particularly weak, with starts down 43% against the preceding three months and 40% compared with the previous year. Private housing also dropped back, with work starting on site falling 22% against the previous three-month period and plummeted 24% on 2023 levels. Sector Analysis – Non-Residential Performance was mixed for non-residential verticals. Community & Amenity project-starts experienced an impressive growth period, increasing by 36% against the previous three months to stand 19% up on a year ago. A boost to the vertical was partially delivered by a £79 million prison extension project in Shaftsbury, Dorset. It was the only vertical to experience growth against both periods. Retail project-starts were in decline over the Index period, with a fall of 13% during Q.1. However, there was a modest value increase of 1% against the previous year. Utility starts decreased 21% against the preceding three months but also saw a modest increase against 2023, up by 2%. Similarly, health starts experienced a fall of 13% against the preceding three months, but advanced 26% on the same period last year. In contrast, education experienced a mixed period, up 3% compared with the last quarter but down 17% on a year ago. Elsewhere the sector continued to slump. Industrial starts remained lower than 2023 levels, decreasing 22%, and falling 15% during the three months to the end of March. Civil works fared particularly poorly, with the value of project-starts declining 34% against the preceding three months, to stand 26% lower than a year ago. A significant driver for the decline was poor performance in infrastructure, which remained 42% behind 2023 levels, with work starting on-site also slipping back 43% against the last quarter. Hotel & Leisure and office construction-starts were also down against both the previous quarter and the previous year. Regional Analysis Northern Ireland was the strongest-performing region in the UK, with project-starts increasing 44% against the preceding quarter, to stand 28% up on this time last year. Here, growth was accelerated by the £44 million development of the Hamilton Dock Hotel in Belfast. The outlook for the East of England was also optimistic. It was the only other region to experience growth against both periods, up 13% on the preceding three months, as well as 25% on the previous year. Growth in the region was helped by the £74 million commencement of a 246 residential unit development in Maldon, Essex. London experienced a 23% decrease against the preceding three months and remained 18% down against the previous year. The West Midlands experienced particularly poor performance, with the value of project-starts falling 56% against the preceding three months and by 45% compared with the same time last year. This was the steepest decline of any region. Work starting on site in the East Midlands (-49%), Wales (-33%), and Scotland (-25%) all remained distinctly behind 2023 figures. Every other region of the UK experienced a weakening in project-starts against both the previous quarter and the year before. To find out more about Glenigan and its construction intelligence services click here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Construction contract rewards remained stable in March following a quarter which had showed a significant increase since the beginning of the year. The value of new contracts was 3% down in February and 1% down on the previous year but remained significantly above the last quarter of 2023, according to analysis from Barbour ABI. Notably, residential contracts were up 60% in February, returning to heights seen in January and were up 62% over the first quarter of the year. Meanwhile, infrastructure fell back to more normal levels following a stellar February but remained 38% up on the same month last year. A new student accommodation facility on Medlock Steet, Manchester will cost £200 million, whilst a new National Grid convertor station at Eastern Green will be built at a cost of £700 million. A new prison at HMP Gartree was also awarded at a cost of £300million. Wates will carry out the work which will commence July 2024. Barbour ABI head of business and client analytics, Ed Griffiths commented: “When looking across the first quarter of 2024 it has become clear that both the infrastructure and residential sectors have had strong starts to the year as businesses attempt to get projects off the ground, which is a positive signal the construction sector is attempting to emerge from the doldrums of last year. “Interestingly in March, we saw Residential and Infrastructure swapping positions in terms of leading overall contract awards value with £2.4bn and £2bn respectively. Together they are pushing the industry awards upwards.” Elsewhere Healthcare projects were subdued in March following two strong months and Economic conditions continue to stagnate the Hotel and Leisure Sector Applications continue to confound recovery. Planning applications have improved in February after a weak start to the year in January but activity levels in most sectors remain low, highlighting that nervousness remains in the sector to commit to future projects ahead of potential rates cuts and upcoming elections. Infrastructure has increased 33% since last month and remains strong against its long-term average. However, it has not returned to the highs of the end of last year. Residential applications fell once again from £3.1bn in January to £2.9bn in February. Griffithscontinued: “The enduring story of 2024 so far has been the contradiction between a rise in contracts awarded, sometimes even for projects which have not yet been fully approved, and the continued lack of confidence shown in both in new applications and approvals – which have been contracting since last November. The industry stands at a crossroads where financial and political decisions made at a national level could tip the balance in either direction.” Find out more at https://barbour-abi.com/ Building, Design & Construction Magazine | The Choice of Industry Professionals
The latest industry research by property development appraisal software , APRAO, has revealed that all but one of the big housebuilders has seen a reduction in the volume of land banking plots held on an annual basis. APRAO analysed the latest annual reports of the seven major UK property developers, looking at total land banking plots held* and how this total compares to the previous year. The figures show that some 501,691 land bank plots are currently held by the big housebuilders, a reduction of -5.4% on the 530,378 held the previous year. Barratt Developments has seen the largest decline in the number of plots held within its land bank, down -13% year on year. Berkeley Group has also seen one of the largest land bank reductions, with total plots falling by -12.3% year on year. Persimmon has seen the third largest reduction at -5.7%, although with a total of 82,235 plots still held, it does rank as the housebuilder with the second strongest book in this respect. Redrow (-4.5%), Taylor Wimpey (-3%) and Vistry Group (-1.7%) have also seen a year on year decline in total land bank plots held. In fact, just one housebuilder has seen an increase, albeit a marginal one. Bellway’s land bank currently sits at 98,164 plots, the largest of all the major housebuilders, having seen this total increase by 0.5% year on year. CEO of APRAO, Daniel Norman, commented: “While 2023 proved to be a particularly tricky one for the UK property market, the overarching expectation was that 2024 would bring a greater degree of market stability and that’s certainly what we’ve seen in recent months. Mortgage approvals are climbing as buyers return to the mix and house prices have also started to improve, driven almost entirely by a buoyant new-build market. It’s clear that the nation’s big housebuilders have acted in anticipation of these improving market conditions, utilising their existing land banks with the aim of delivering additional stock to market in order to help fuel this improving market sentiment. Of course, with other factors such as higher interest rates still presenting an obstacle, there has been less urgency to refresh land bank stock levels. But with the base rate forecast to fall this year, it’s likely that 2024 will see developers renew their stock pipeline when the time is right.” Sources and data tables Building, Design & Construction Magazine | The Choice of Industry Professionals
Funding has been secured by Sempra Homes for the delivery of the Markhams Chase development in Basildon. The development of three, contemporary two-bedroom houses will be delivered in partnership with One Public Estate under the Government’s Brownfield Land Release Fund (BLRF) programme. Melanie Keys, Services Manager at Sempra Homes commented: “We are pleased to see this development come forward, which will be delivered in partnership with One Public Estate and Homes England. It has been a long time in the making, and we look forward to seeing the transformation of the site from its current unused hardstanding, which has been prone to fly-tipping and nuisance for many years, into three beautiful contemporary homes.” The modern homes will be available as part of Sempra Homes’ Shared Ownership affordable housing programme, which will give priority to Basildon Borough residents, key workers, and veterans, who will be able to purchase these homes and make their first steps on the housing ladder. The homes will be built to a high specification featuring integrated energy-efficient appliances in the kitchen Using a Fabric First Approach, they will be designed to be energy efficient as well as meet National Space standards. Sempra Homes will also be working with Secured by Design officers to achieve gold accreditation, creating a safe place for people to live. As part of the sustainability strategy for the development, each property will have an electric vehicle charging point, and all mature trees will be retained as well as the inclusion of a wild meadow and pollinator planting to encourage wildlife. Sempra Homes will also be creating a new sheltered bus stop on Markhams Close with real-time information boards and providing a contribution of £10,000 towards the Find Your Active Basildon Partnership to improve the health of the local community through well-being and physical activity community work in the area, which is aligned with the Council’s Safe and Sounds Estates work. The development was designed by Calford Seadon Architects and Building Associates are appointed to construct the new development, with PSW acting as Sempra’s Employers Agents. Image: Calford Seaden Building, Design & Construction Magazine | The Choice of Industry Professionals
Last-minute amendments to the Renters (Reform) Bill designed to appease some Tory backbenchers will make ‘little material difference’ to the majority of landlords or tenants, according to the managing director of client accounting and automated rental payment specialists, PayProp UK. Neil Cobbold, who has closely followed the progress of the legislation since it was introduced 11 months ago, said: “When you take a step back and look at the details, these new changes amount to very little in real terms – in fact, the Bill is more or less intact. “The government has made some tweaks after speaking to the industry but in practical terms, nothing substantial in the Renters (Reform) Bill has changed for the majority of tenants and landlords.” Just before the Easter break, the government announced that it would table a series of amendments to the Bill in an effort to calm opposition from some of its own MPs. The proposed changes include: Tenant groups and charities reacted angrily to the proposed amendments claiming the government was betraying renters in favour of placating their own backbenchers. But Cobbold said: “Although these amendments were billed as a big announcement, there’s nothing here that is particularly groundbreaking. “Waiting for reform of the court process before the abolition of Section 21 is something we’ve known about since the Bill was introduced. What will be key is the details of this assessment, which we have been calling for since the legislation was introduced. The abolition of Section 21 has been a policy of every major party since the last election, so it has become a question of whether this government will abolish it or a future one. “Until Section 21 is abolished, landlords will have to think in a slightly more structured way about how they actually evict somebody. Having to wait four months before you can give two months’ notice is effectively a six month wait – well it’s at least a six month wait now if an eviction notice is contested and the matter has to be settled through the legal system. The only material difference here is that tenants won’t be able to treat the PRS like an Airbnb lite, giving notice as soon as the tenancy begins to secure cheaper rents for a few months in a new location. “Revising the legislation to protect student lets is something almost everybody is in favour of – students and landlords alike. If the Government didn’t take action there’d be a major problem for the new intake of students at the beginning of the academic year. “And as far as the property portal removing the need for local authority licensing schemes is concerned, what the government has announced is only a review. What the industry is keen to see is the abolition of selective licensing schemes and HMO licences so there is consistency across England – although the question of how enforcement will work is less clear. “I think these are quite balanced changes that the government is proposing to the Bill – nothing really contentious at all and certainly not a landlord’s charter, as some are claiming.” MPs return to work after their Spring break on Monday 15 April and the Bill will be scheduled for its Third Reading shortly afterwards before progressing to the House of Lords. Building, Design & Construction Magazine | The Choice of Industry Professionals
The latest analysis from quick sale specialists, Open Property Group, has revealed that despite enjoying strong rental income growth on an annual basis, the average buy-to-let investor has reduced the size of their portfolio by as much as -27% across England and Wales. Open Property Group analysed the latest data on buy-to-let portfolio sizes and how they have changed over the last year when it comes to size and profitability*. The research shows that with an average of 8.5 homes, the average investor has reduced their portfolio size by -1.6% year on year. However, across some regions, the reduction in portfolio sizes have been far more pronounced and nowhere more so than Yorkshire and the Humber, where the average size of a buy-to-let portfolio has fallen by -27% to an average of nine properties. Across the West Midlands the average buy-to-let inverter currently holds 10.7 properties within their portfolio – a reduction of -19% year on year, with the South West also seeing an average reduction of 13% to 6.5 properties. The average size of a buy-to-let portfolio has also reduced across the North East, central London market, East Midlands and East of England. However, there has been growth across outer London, the North West, South East and Wales. This is despite the fact that the average rental income per property has increased by an average of 8.8% over the last year, with investors across Yorkshire and the Humber seeing the largest jump at 30.9%. However, while rents may be climbing, the figures also show that profit margins are in decline, with the average rental yield falling by as much as -1% across the North West and central London regions. CEO of Open Property Group, Jason Harris-Cohen, commented: “Much has been made about the landlord exodus in recent times and it’s fair to say that the severity of this trend has been largely exaggerated. However, the figures do suggest that while buy-to-let investors may not be exiting completely, they are reducing the size of their rental property portfolios. In fact, buy-to-let investors are accounting for an increasingly larger segment of sellers looking to utilise the quick sale route, as they look to off-load part of their portfolio with minimum fuss or stress, having benefited from years of rental income and capital appreciation. With a reduction in capital gains tax fast approaching, we expect more investors will look to streamline their portfolios given that the cost of existing is set to reduce and who can blame them? Data Tables and sources Data tables and sources can be viewed online, here. Building, Design & Construction Magazine | The Choice of Industry Professionals
The Royal Town Planning Institute (RTPI) has expressed its support for the government to build more homes on brownfield land. However, the Institute warns that new urban brownfield schemes must be closely monitored to ensure residents are not landed with poor quality homes or poorly planned developments that people wouldn’t want to live in. In its consultation response, the RTPI has emphasised the importance of ensuring that new market housing does not displace commercial, industrial, and logistics uses for brownfield sites that are critical for local economic growth. The Institute further stresses that brownfield and previously developed land can be more difficult to develop, and the government should take more proactive steps to help councils encourage this development. To facilitate this process, the RTPI has suggested that scaled-up Homes England funding for brownfield development, and support for local authorities to review and update their brownfield land registers could be instrumental in strengthening development pipelines quickly. The Institute also recommends that stronger mechanisms for strategic planning and public service provision could help make previously developed land better serve their communities in the long term. Victoria Hills, Chief Executive of the RTPI, said: “We welcome the government’s drive to deliver more homes on brownfield land. However, it is crucial that new developments are well-planned and of high quality, and that they do not displace important commercial and industrial uses that play an important role in supporting sustainable mixed-use places including local economies. “With the right support and funding, we can ensure that brownfield sites are brought back into use in a way that benefits local communities and contributes to economic growth.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Easter weekend will mark the launch of a unique retrofit development in Devizes, Wiltshire. Designed to offer a more sustainable way of life, Marlborough Close by Annington will bring to the market just five four-bedroom homes, each having been carefully refurbished to become smarter and more efficient. Each home at Marlborough Close has been brought up to EPC A – a standard achieved by only the most energy efficient homes. Smart technology has been optimised to bring these homes up to 21st Century standards, meaning homeowners can enjoy lower energy bills and a smaller carbon footprint. Sustainable upgrades include an AI-powered Mixergy Smart Cylinder Tank to each property, alongside an air source heat pump, 14 photovoltaic panels, and brand-new double-glazed windows, thermal rendering, and energy-efficient appliances. The houses will go on the market on Good Friday (29th March) following exceptionally high demand, with nearly half of all pre-enquiries coming from local homebuyers living in the SN postcode. Proving to be particularly popular with movers seeking the countryside, Annington has seen interest from a balance of upsizers looking for room to grow, and downsizers pursuing sustainable living at an achievable price point. Marlborough Close combines traditional country living with an environmentally-friendly lifestyle, thanks to its setting on the outskirts of the historic market town of Devizes, overlooking the rolling fields nearby. The development itself comprises five spacious detached and link-detached four-bedroom homes, located within an exclusive private gated close. Each property offers an abundance of living space, thanks to an open plan kitchen/diner, a dual-aspect lounge, alongside four spacious bedrooms and two bathrooms. Stacy Whitehead, Marketing Manager at Annington, comments: “Homes like these simply aren’t available elsewhere – Marlborough Close is truly a unique offering in Devizes. Tucked away in an idyllic countryside setting, these homes are a peaceful retreat for buyers seeking a more sustainable way of life without compromising on modern comforts. These properties really must be seen to be appreciated, which is why we will be opening the doors to our thoughtfully-designed show home on the launch weekend. Visitors will be able to experience firsthand the lifestyle on offer at Marlborough Close. “With just five homes available to buy, demand is already incredibly high. To avoid disappointment, we strongly encourage anyone interested to book a viewing for the launch weekend on 29th March, so please get in touch!” Devizes is one of Wiltshire’s best kept secrets. The town has retained its market heritage, hosting a monthly farmers’ market, and a Food and Drink Festival in September. On the town’s bustling high street can be found a selection of independently-owned businesses, shops, and cafes, alongside their chain counterparts. Marlborough Close is located on the edge of Wiltshire’s famous rolling landscape, ideal for countryside walks and excursions. The Kennet and Avon Canal is just a short walk away, while the millennium Devizes White Horse chalk hill figure proves an exciting day out for experienced walkers. To find out more about Annington, visit www.annington.co.uk Building, Design & Construction Magazine | The Choice of Industry Professionals
