• Issue 32

  • Jan 2018

The Source

Housebuilder News

Housebuilders make Fast Track 100 league

A number of housebuilders have featured in the latest Sunday Times Virgin Fast Track 100 league, an index which ranks Britain’s private companies with the fastest growing sales over the past three years.

Hackwood Homes was placed 11th in the league table. Founded in 2006, the business more than doubled its sales to £24 million last year with an order book worth £90 million. The Basingstoke-based construction company builds retirement homes across southern England.

Eccleston Homes was ranked 13th, building 31 homes in 2016 which helped boost sales to £11.7 million. The Warrington-based company began in 2011 and has built more than 100 homes in north west England.

Bargate Homes made 25th place, growing sales to £36.4 million in 2016 after being established in 2006 by former Linden Home’s regional chairman Gerard Price. The Hampshire-based builder has completed 55 schemes to date.

The Northumberland-based Cussins achieved 29th place after hitting sales of £24.2 million this year. It specialises in delivering high quality homes and plans to sell 250 homes a year by 2020.

Worcester-based Lioncourt Homes was ranked 41st, having experienced 123% growth over the past three years. The company, founded by CEO Colin Cole in 2006, reached a turnover of £56.2 million in 2017, and sold 290 homes.

Story Homes was listed in 75th place with the Carlisle-based housebuilder completing more than 800 new homes in 2017, up 42% on 2016. Sales lifted to £173.8 million. Its operating profits are the highest of the league table, at £26.2 million.

And housebuilder and contractor Chartway Group was ranked 100th in the table. Its residential arm Westerhill Homes drove turnover to £68.6 million this year.

Source – Housebuilder

New home registrations hold steady

NHBC has reported that nearly 15,000 new homes were registered to be built in the UK during November, the second highest monthly total for 2017.

14,942 new homes (11,170 private sector; 3,772 affordable sector) were registered during the month, compared to 15,211 (11,818 private sector; 3,393 affordable sector) in November 2016.

41,124 new homes were registered during the rolling quarter (September – November) – a 2% increase on the 40,230 registered at the same time last year.

Over the rolling quarter 31,403 homes were registered in the private sector, representing a 4% increase on the same period a year ago (30,298), with 9,721 new homes registered in the affordable sector, a 2% decrease on 2016 numbers (9,932).

Half of the 12 UK regions experienced growth in registrations over the rolling quarter, when compared to the same period last year. The East Midlands (3,875 +47%), North East (1,882 +41%) and Northern Ireland (1,004 +9%) were among the regions with most notable growth.

As the leading warranty and insurance provider for new homes in the UK, NHBC’s registration statistics are a lead indicator of the UK’s new homes market.

NHBC Chief Executive Steve Wood said: “It is encouraging to report strong figures for new home growth as we reach the end of the year.

“As ever, the demand for new homes remains strong, so this is very positive news for the industry and for consumers looking to buy a brand-new home.”

NHBC UK statistics for September – November 2017 show that: NHBC new home registrations was 41,124 compared to 40,230 in the same period last year. Of these: 31,403 were registered in the private sector, compared to 30,298 in the same period last year; 9,721 were registered in the affordable sector, compared to 9,932 in the same period last year.

Source – Showhouse

Taylor Wimpey Trading Figures on the Right Track

As reported in a recent trading update, completions at Taylor Wimpey were up 5% in 2017, to 14,541 homes, and they confirmed that their full year results were in line with expectations. In addition, the group is set to deliver an operating profit margin of around 21.2% against 2016’s 20.8%.

Their private average selling price increased 3% to £296,000, with its net private reservation rate at 0.77 homes per outlet per week against 2016’s 0.72.

Taylor Wimpey said their order book numbers had fallen with the increased pace of production “so as to meet market demand in the year”. The business entered the new year with 278 outlets against 2016’s 285 after trading from an average of 287 outlets in 2017 (2016: 290). Similarly, the company’s order book, as of December 31 2017, was valued at £1,628 million (December 31 2016 = £1,682 million), representing 7,136 homes compared to 7,567 at the end of December 2016.

Pete Redfern, Taylor Wimpey’s CEO, said: “We achieved a strong financial and operational performance in 2017 and are continuing to deliver against our strategy. Despite wider macroeconomic uncertainty, housing market fundamentals remain solid and our trading performance has been good.”