Posts tagged Real estate economics
Increased demand from first-time buyers coupled with the government’s increased investment in the housing market are driving new private housebuilding projects to grow by 40 per cent in the second quarter of 2012, resulting in more employment opportunities for people in the trades.
New data published by construction industry analyst Glenigan has revealed significant year-on-year growth in the underlying value of new private housing project starts in the first two quarters of 2012, compared to the same period in 2011.
Glenigan forecasts indicate that the underlying value of project starts will increase by 29% over 2012 providing further employment opportunities for builders and trade professionals, including electricians, plumbers and gas engineers.
Glenigan said the findings are giving a strong indication that confidence is returning to the private housebuilding market, paving the way for more jobs in the building construction industry.
Economics Director at Glenigan, Allan Wilén, said that despite weak economic conditions and a fragile banking sector, housing developers have seen an increased demand from first-time buyers and the government’s incentive schemes which have helped them to make a swift economic recovery.
Commenting on the sector’s future performance Mr Wilén said:“While the threat of an increase in interest rates and the end of the stamp duty holiday have stymied the market to a certain extent, we expect the sector to continue to grow through 2012 and 2013 as the wider economy begins to recover once more.”
The figures from Glenigan, compiled through comprehensive data collation and exhaustive research, reveal that London and the South East continue to dominate the market having accounted for almost a third of the value of all new private housing schemes starting on site in the first half of 2012.
Do you welcome the figures by an industry expert Glenigan indicating significant house-building activity in the second quarter of 2012? Let us know what the implications might be for you or your business by commenting here or raising your voice on our Facebook and Twitter page.
As reported by BBC News today, homebuilder Redrow has announced plans to raise £80 million of new shares to fund its expansion plans, which will create growth opportunities for the building construction sector.
Redrow has secured planning for more than 3,000 plots across the UK and acquired new sites totalling £50 million which are likely to create more employment opportunities for trade professionals. The housebuilder told the Financial Times that it intended to acquire more land ‘as and when opportunities arose’, as well as developing land bought cheaply during the recession.
Steve Morgan, Executive Chairman at Redrow, outlined the significant growth opportunities for the London area and other regions by saying that the firm will continue to follow its existing strategy for growth.
Mr Morgan, who is also the owner of Wolverhampton Wanderers Football Club, said Redrow has made good progress in selling high-quality family homes and that the firm will continue to pave the way for more work in the future, increasing confidence in the housing market.
He said: “We now believe the time is right to accelerate that strategy by taking advantage of the development opportunities we see.”
What is your reaction to the announcement by housebuilder Redrow to raise significant investment and boost the housing market? How do you think trade professionals could benefit from this? Share your thoughts by leaving a comment below:
In a drive to boost the housing market and accelerate the building of new properties in the capital, the Greater London Authority (GLA) is seeking developers to join a new £5 billion procurement panel which will open more work for external contractors and building developers, Construction News reported today.
From 2013 the new housing procurement panel will replace the current Homes and Communities’ Agency, the London Delivery Partner (LDP). It is going to be managed directly by the GLA, speeding up the process for building private and social houses as well as improving the development of properties in the public sector.
The new panel will recruit up to 28 building firms that employ thousands of workers in the building construction engineering sector. This could provide more employment opportunities for trade professionals.
A bidding process is currently open to any firms that are capable of delivering housing developments, raising sufficient finance and improving community facilities. Interested developers need to apply before 4th May 2012 and successful bidders will be awarded by 1st April 2013.
The scheme is expected to increase competition between contractors and improve current housing standards as well as optimise the process of marketing and selling new homes in the capital.
What’s your reaction to the £5 billion fund which will give the Greater London Authority more control over future housing developments in the capital? Share your thoughts by leaving a comment below:
One of the UK’s largest building distributors, SIG, has reported a rise of 3.9% in sales of building materials for the construction industry. The positive news comes as the demand for contractors, builders and construction companies continues to rise due to a return in confidence in the housing market.
Growth figures are considered to be a result of improved trading conditions and recent government investments aiming to boost the building construction sector.
The government made the announcement this week to help up to 100,000 people in England buy their own homes. The recent scheme,‘NewBuy’, will further increase demand for new build homes and unlock the housing market, Prime Minister, David Cameron said on Monday.
SIG’s pre-tax profits reached £81.7 million when the group is planning to open more than 15 new branches in the future. The current housing shortage in the UK is expected to encourage building of more new homes as well as increase employment across the construction sector.
Chief Executive at SIG, Chris Davies, thinks that despite the current uncertainties in the macroeconomic environment the company will continue with its positive performance.
Mr Davies said: “We enter 2012 as a much leaner, stronger and more focused organisation. Sales per day in constant currency so far this year were around 1% ahead of strong prior year comparators, despite the impact of severe weather across mainland Europe in February this year.”
What is your reaction to the improved sales figures of SIG, suggesting that the construction sector is better now off than it used to be a few years ago? Share your thoughts by leaving a comment on Train4TradeSkills’ Facebook and Twitter pages:
House builders across the UK have seen a rise in their operational margins for the second half of 2011 as residential investment property delivered a return of 11.3% last year according to statistics published today by the Annual Residential Property Index.
One of UK’s largest home builders, Taylor Wimpey, has doubled its operating margins from 6.4% in 2010 to 10.1% for the last quarter of 2011 as the house market continued to improve.
Taylor Wimpey’s operating profit jumped to £159.5 million for the last year, representing an increase of 81% compared to operational profit of £88.3 million for 2010.
Growth in the housing market is considered to be a result of the continual government investment aiming to build more new homes all over the UK. It has recently invested £250 million in affordable housing schemes and made proposals to sell off public land to encourage house-building projects.
Chief executive at Taylor Wimpey, Pete Redfern, said that company’s performance is a result of a continual focus, significant improvement in margins and return on capital.
Mr Wimpey said: “While wider economic conditions remain uncertain, the UK has seen a period of continued stability in the underlying housing market and strong growth across a number of areas as shown by our order book. We feel well-positioned to deliver further improvement through our value-driven strategy.”
Are you optimistic about future growth in the housing market and what it would mean for you? Share your thoughts by leaving a comment below: