Housebuilders return to land market amidst ‘green shoots of recovery’
More housebuilders are returning to buy land in the region, encouraged by improving new homes sales, slowing build cost inflation and rising stability in the wider market. An analysis by property firm Savills shows strong demand for development sites across the region in the first quarter – although activity varies depending on location and site. Richard Janes, head of development at Savills Cambridge, said: “In general there have been more active players in the market and we have certainly seen an uptick in both sites and bids received…There’s still a sense of caution as many housebuilders remain quite selective, but there are definite signs of some green shoots of recovery.” He added: “There remains a strong preference for deferred payments and conditional deals, while consented sites in primary and secondary locations – with planning already agreed in principle and good transport links to key towns and cities – are the most popular.” The agent says land prices are stabilising and are unchanged so far this year although greenfield values are still down by six per cent in the East compared to a year ago and urban sites are down by 7.7 per cent. Housebuilders face challenges in Norfolk where nutrient neutrality is hitting new build delivery rates. Meanwhile, tender prices rose by 2.9 per cent over the year up to the first quarter compared to 8.6 per cent in the previous year.
Photo: Homes England’s 135 acre site at the former Panshanger Aerodrome in Herts where 760 homes will be built.
Outlook for businesses ‘starting to shift’ despite struggles to access funding
The outlook for businesses in the region is becoming more optimistic although firms are continuing to struggle to get funding and with inflation, according to BDO’s economic engine survey of mid-market businesses. Peter Harrup, head of BDO in East Anglia, said: “Despite trading conditions remaining difficult, the outlook for businesses is starting to shift. According to our survey, over half of East Anglian businesses feel more confident about their business prospects this year, compared to the second half of 2023 when the UK recorded a technical recession.” However almost a quarter of businesses in the region (24 per cent) are struggling to secure funding; through bank loans, private equity, private credit loans, or government grants. Nearly a fifth said declining demand – as consumers spend less and more B2B businesses close – was impacting their bottom line. Peter Harrup added: “It is positive to see some optimism, but East Anglian businesses cannot achieve their growth ambitions alone. The political landscape is still unclear but, whatever the outcome, regional businesses need to see better access to capital and more progress on levelling-up in the regions high up on the list of priorities.”
Separately, a sharp fall in the number of corporate insolvencies in England and Wales is an additional sign that economic conditions are starting to improve and revenues may increase this year, says the Eastern branch insolvency and restructuring trade body R3. Insolvency Service figures show that corporate insolvencies fell to 1,815 in March, down by 17 per cent on both the previous month and on March last year.,
Turkish group to invest £45 million in building materials manufacturing plant in Stowmarket
A Turkish industrial firm, Assan Panel, is planning to invest £45 million in a building materials plant at the Gateway 14 site in Stowmarket – part of the Freeport East low tax zone – and create around 100 jobs. It will be the Turkish group’s first UK manufacturing site and it is aiming have the plant operational by autumn 2025. Assan Panel, a major affiliate of Kibar Holdings which exports to 85 countries from Turkey, is also planning to open an office in Ipswich to cater for the UK market. The new plant will make sandwich panels filled with PIR, mineral wool, or polyurethane – key components in sustainable buildings – and will involve a skilled workforce. Steve Beel, chief executive of Freeport East, said: “This announcement represents a real milestone in strengthening the presence of green industry in and around the Stowmarket and wider Freeport East area. As well as direct job creation, the investment will provide opportunities to build strong local R&D relationships with universities and drive the development of the skills and innovation cluster at Gateway 14.” The announcement comes as the UK and Turkey are in talks on an enhanced free trade agreement.
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Corporate finance team advises on quarrying and concrete deals
Grant Thornton’ corporate finance team in the East has advised Peterborough-based PJ Thory on the acquisition of three quarry sites and Gemmix on the acquisition of five ready-mix concrete sites which are thought to have made it the largest independent supplier in the sector. The sites were acquired from Heidelberg Materials, which was forced to sell them by the Competition and Markets Authority following its acquisition of Mick George Group. The rmc sites are in Cambs, Northants and Leics while the quarries are in Norfolk and Northants. Toby Hare, corporate finance director at Grant Thornton UK, said: “…PJ Thory has successfully executed multiple opportunistic acquisitions by providing a synergistic fit for the Heidelberg sites, making it the leading independently owned provider in the UK.”
Financial services firm expands Cambridge office
Audit, tax and consulting firm RSM UK is set to open a newly-refurbished and expanded office in Cambridge as it seeks to grow its market presence in the city and East Anglia. The refurbished office will expand from just over 3,000 sq ft to nearly 5,400 sq ft and is the base for seven partners and three directors. Helen Brocklebank, RSM regional managing partner for the firm’s central region, said: “Cambridge has one of the fastest growth rates of any British city, and it is hugely important globally as a centre of technology and research excellence. That’s why the growth of our team in East Anglia is a key element of our business strategy.”
Sales boost at East of England Co-op
The East of England Co-op says it is on track to return to profit after lifting turnover by five per cent to £395 million thanks to sales growth across food – up by more than £18 million – travel and petrol filling stations. Together with cost control, it helped reduce trading losses by £1.6 million over 2023/24. Chief executive Doug Field said: “We’re making progress towards a stronger future. Despite the challenges we’ve faced this year our plan to return to profitability, focusing on the fundamentals, is working. We’ve reduced our trading losses by more than 25 per cent and are on track to return to profit.” The East of England Co-op expanded its food business into Cambs for the first time with stores at Waterbeach and Cambridge North Station and opened a third food store outside Chelmsford station. It is the first co-op food retailer in the UK with its own shopping app and has launched a new partnership with Just Eat. The member-owned retailer has over 230 branches across Norfolk, Suffolk, Essex and Cambridgeshire.
Suffolk company receives sustainable development award
Suffolk-based malting company Muntons has received the King’s Award for Sustainable Development in recognition of its initiatives in the area. The Stowmarked-based company, which supplies the food & soft drinks, brewing and distilling industries, was recognised for its efforts taken to reduce its environmental impact at both its up and downstream supply chain, including farms growing barley. Group managing director Mark Tyldesley said:”It is a testament to the work we have done for many years to challenge what is possible in our industry to make a real difference on sustainability. We take pride in the actions we have taken so far, not only reducing our own carbon emissions, but helping our suppliers and customers achieve their goals too, as well as sharing what we have done within our industry.“
Norfolk law firm’s academy for sixth form students draws to a close
Rogers & Norton Solicitor’s Law Academy 2023-2024 has drawn to a close, marking the end of an enriching journey for aspiring legal minds. Working in partnership with several local schools, the Norwich-based law firm delivered a series of monthly workshops designed to cultivate the next generation of legal professionals, led by lawyers who specialise in the topics being covered. The workshops provided students with an insight into day-to-day life of lawyers working within specific practice areas such as family law, wills, trusts and probate, property, commercial, litigation and personal injury. The final workshop, held in April, provided a fitting finale to the academy, with a workshop focused on career paths and the route to becoming qualified. Led by director and personal injury solicitor Mark Hambling, their final session featured talks by solicitor Chloe Tooley, associate and chartered legal executive Hannah Rudling, and guest speaker Henry King, a barrister from 12 King’s Bench Walk. They shared their own journeys into law, offering insights and discussing the various entry options. It was open not only to students but also their parents and teachers, all eager to learn more about the legal profession. Read more…
Photo: The group at the final academy workshop
Cambridge company wins award for approach to ‘managing change’
Cambridge company Domino has won an award for its robust and sustainable approach to managing change across its business. Domino took first prize in the future-ready leadership category of the Change Awards held at Drapers’ Hall in London last month for the creation of its change management framework, a comprehensive training programme for both management teams and employees. The company’s submission also highlighted its annual change management maturity audit, conducted with the executive team, which ensures integration, consistency and measurement of change management across all business functions. The judges said: “This is an exceptional example of holistic and sustainable change management implementation across a complex business landscape.” They were also impressed with the company’s focus on building an internal change network to support projects. The vote for Domino as category winner was unanimous. Two Domino employees were also shortlisted for the individual awards: Lucia Ivanova in the best capability builder category and Stephanie Chandler in the technology implementation category. Robert Pulford, Domino CEO said: “Our business agenda will require change, and this award is a testament to our commitment to equipping our leaders to ‘manage change’, both initiating and ensuring it delivers meaningful benefits.”
Photo: At the awards – Stephanie Chandler, business change and benefits manager and Lucia Ivanova, channel development change manager.
President of Royal Norfolk Agricultural Association takes up role
Lady Philippa Dannatt, Lord-Lieutenant of Norfolk, is taking up the role of president of the Royal Norfolk Agricultural Association for 2024. She said: “Farming in Norfolk and the Royal Norfolk Show have been a part of my life for as long as I can remember.” The Royal Norfolk Show is the largest two-day county show in the UK, attracting over 80,000 visitors, with 700 stands and over 3,000 animals. Lady Dannatt added: “As a child, the show was always the highlight of the year. I was born and brought up in Keswick, not far from here, and it was with enormous pride that my grandparents hosted the Norfolk Show in Keswick Park, just after the war. The King and Queen came to visit and took tea at the Old Hall, Keswick. My grandfather even managed to spill tea down the King’s trousers. Hopefully, we can do better if we have a royal visitor this year.”
