Development land prices fall but market remains ‘steady’
Development land values have fallen by over six per cent in the East of England over the past year although activity remains ‘steady’ and a shortage of supply is fuelling competition for sites amongst housebuilders. Greenfield land values in the East fell by 1.5 per cent in the three months to June, a decline of 6.4 per cent in the last year, according to figures from Savills. Richard Shuldham, associate at Savills in Norwich which covers Norfolk and Suffolk, said: “Appetite remains steady and values are holding up for sites between 50-150 homes in primary locations with no significant upfront infrastructure costs. Whereas sites in secondary and tertiary locations are more likely to see reductions in land values.” He added: “Although some of the major housebuilders are cautiously returning to the land market, many have reduced their delivery targets to suit their existing land pipeline. For others, immediate deliverability is key as they look to bridge the gap to their longer term sites.” Private housebuilders – supported by private equity – are also seeking land to gain market share. Despite a challenging market, a Savills survey shows a net balance of 37 per cent of the firm’s development agents reported more positive market sentiment, up from 23 per cent in March. Urban land values in the East dropped by just 0.3 per cent in the three months to June and rose by one per cent over the last year.
Photo: Land at Humber Doucy Lane, Ipswich which was recently sold to housebuilders Barratts and Hopkins Homes for £18m.
Firms planning recruitment drive despite economic concerns
More firms in the East are planning to hire additional staff over the coming year despite a dip in business confidence in July as firms grew more cautious on the economic outlook. A net balance of 42 per cent of businesses in the region expect to increase staff levels over the next year, up 22 points on the previous month, according to a business barometer from Lloyds Bank Commercial Banking. But overall business confidence in the East of England fell 17 points in July to 25 per cent. Firms’ confidence in their own business prospects in East was little-changed – down five points at 43 per cent – but their optimism on the economy slumped by 27 points to seven per cent. Dene Jones, regional director for the East of England at Lloyds Bank Commercial Banking, said: “A challenging economic picture for the UK, signalled by the Bank of England’s continued interest rate rises, is likely what’s impacting East of England firms’ confidence. But despite a dramatic drop in optimism in the overall economy, it’s encouraging to see businesses remain bullish about their own prospects….This is backed up by the surge in businesses planning a recruitment drive….”
Separately, Lloyds Banking Group has appointed Tom Martin as its new ambassador for the East of England. He will engage with local politicians, regional business leaders, community networks and charitable organisations to address challenges such as ways of increasing access to affordable housing as well as championing the region’s businesses and core sectors. He is also the business platform lead for economic crime prevention at Lloyds and has been at the group for 15 years.
Photo: Hertfordshire-based Aylett Nurseries has used a £180,000 loan from Lloyds Bank to invest in 455 new solar panels to produce enough electricity for 30 per cent of its annual consumption.
Satellite comms company opens second site in Cambridge
Hanwha Phasor (UK), which makes antennas for moving satellite communications, has opened a second site in Cambridge. Lucy Frazer, the culture, sport and media secretary and MP for SE Cambs officially opened the new facility on Cambridge Science Park this week. The business was formed by South Korean group Hanwha Systems to acquire Phasor Solutions’ patented technology and related assets in 2020. Since its move into the UK, Hanwha Phasor’s employee numbers have grown from nine to 90 and the company believes the advanced manufacturing capabilities it has in Cambridge will enable it to continue to grow. On her visit, Lucy Frazer (photo) met the team behind the custom ASIC chips which will allow Hanwha Phasor to tackle power consumption issues that have plagued the satcom industry. She said: “…. It is great to see innovative businesses like Hanwha Phasor choosing Cambridgeshire for their future operations. Not only will they add to the wealth of scientific excellence in our region, but they will offer more employment opportunities to local people and investment to our local economy”.
Dominic Philpott, chief operating officer of Hanwha Phasor, said: “The Cambridge branch of the Hanwha team is a crucial component of our overall mission with the development of our custom ASIC chips. We look forward to expanding our partnerships in the Cambridge area further, expanding the team and creating new job opportunities for the region”.
Norfolk-based commercial cleaning company acquired
A Norfolk-based commercial cleaning company, StuLee, has been acquired by a Lancashire-based group SymClean Industrial. Founded in 2006, Dereham-based StuLee has long-term relationships across East Anglia with clients ranging from schools and councils to major estate agents and holiday letting companies. SymClean was established in 2014 by Tanya Targett and is now a leading UK commercial cleaning provider across a range of sectors and particularly the food production industry. The acquisition allows SymClean to continue its strategic growth across the UK and in East Anglia where it employs 180. Stuart Ford, founder of StuLee, said:“This acquisition is evidence of the strength and hard work of our team and the business we have built…. I will still be working in the business and I look forward to seeing the further development of StuLee under the SymClean Industrial brand.”
Photo (l-r) : Gary Targett, Symclean director, Tanya Targett, Symclean managing director, Stuart Ford , Stulee manager, Sue Targett, Symclean director.
Norfolk coastal hotel sold to holiday operator
One of the oldest hotels in Hunstanton on the Norfolk coast, the recently refurbished 29-bed Golden Lion Hotel, has been sold to a UK holiday operator, L & J Leisure. The hotel overlooks a sandy beach and facilities include a restaurant, bar and beer garden with sea views. Ed Bellfield, regional director at Christie & Co, who acted for the seller, said: “We are delighted to announce that The Golden Lion, Hunstanton will be joining L & J Leisure’s growing list of hospitality and retail businesses. The property is one of the 33 leisure-focused hotels that we are currently marketing on behalf of Coast & Country, which have received very strong interest to date.”
Property agency completes highest number of deals in country
Following a busy April, May and June, Fenn Wright’s commercial agency team in Essex has topped the Estates Gazette Radius leaderboard for concluding the most transactions in the country in the second quarter. The 58 deals completed is the highest number of deals in Essex and also across all counties in the UK. Meanwhile, Fenn Wright’s Ipswich-based commercial agency team finished second in the Suffolk rankings. Michael Moody, partner at Fenn Wright, said: “Demand for flexible work space remains strong in the region, with offices accounting for 50 per cent of the completed deals. Industrial transactions accounted for 34 per cent, with retail and the investment sector making up the remainder. We aim to keep up this momentum with a view to competing for the top spot in Q3.”
Photo: A commercial property involved in a recent deal completed by Fenn Wright; 4 Charter Court on Stephenson Road, Newcomen Way, Colchester.
Law firm boosts specialist injury team
Ashtons Legal has appointed associate Sylvia Phillips to its specialist asbestos disease injury team. She qualified as a solicitor in 2002 and has spent her career gaining wide experience in personal injury, specialising in mesothelioma and asbestos-related disease claims. An accredited litigator of the Association of Personal Injury Lawyers, she joins consultant Andrew Wilson, solicitor Martyn Hayward and paralegal Saima Salsabil, all of whom provide advice and support to clients who have developed diseases related to historic exposure to asbestos. Michael Wangermann, head of injury services at Ashtons, said: “We are delighted to welcome Sylvia to the team. She joins at a busy time when we are still seeing many enquiries from people suffering with illnesses following exposure to asbestos, a deadly substance, the use of which was only banned in the 1980s but which is still present in many schools, hospitals and other public buildings.”
Photo (l-r): Amy Rose, Ruth Sparkes, Andrew Wilson, Sylvia Phillips and Saima Salsabil.
Order book strengthens at partnership housing group
Lovell, the partnership housing group which works widely across the region, has reported a stronger order book and a resilient first half, bolstering the performance of parent company Morgan Sindall. Lovell’s secured order book at end-June was up 27 percent on last year at £2.074m. Meanwhile, its first half revenues rose to £373m, up from £284m last time and operating profits were £10.1m, compared with £13.9m previously. Regional managing director Simon Medler, said: “This is a time of real opportunity for Lovell. More than ever, we are supporting our partners through our flexibility, innovation and strength and we must remain focused on the delivery of homes that will shape future communities.” He added: “The announcement from Homes England earlier in the summer, confirming its support of both replacement and regeneration schemes, is welcome news. Not only will this unlock a large number of regeneration schemes, it also paves the way for further investment in construction jobs and wider social value projects….” Key projects where Lovell is working include open market developments at William’s Park in Wymondham, St Edmund’s Park in Acle, Bowlers Green in Hopton-on-Sea and All Saints Green in Stradbroke and various sites where Lovell Partnerships act as contractors on social housing developments. Morgan Sindall reported record results driven mainly by a strong showing at its fit-out division. Group revenues were up by 14 per cent to £1,935m and adjusted pre-tax profit rose ten per cent to £59.8m
