Development firm Henry Boot says there are "encouraging signs" that house builders are returning to the market after recent turmoil.
The Sheffield-based group pointed to signs of recovery in both the residential and industrial markets with housing developers beginning to selectively buy land, with its Hallam Land Management business having offloaded some 1,900 plots including across key sites in Coventry and Milton Keynes. In a trading update the firm also said other sites were under offer but highlighted frustrations with delays in the UK planning system which was slowing its ability to get permissions across its land bank of more than 95,000 plots.
Across its own housing development arm - Stonebridge Homes - house prices were said to be holding firm with cost inflation, materials and workforce availability issues easing. Mortgage availability was also providing cause for optimism but the firm said it needed to achieve higher sales rates across the key spring and summer periods.
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Demand was also said to have picked up in the industrial and logistics market with the build-to-rent market attracting investors again after a slowdown in 2022. Henry Boot revealed 57% of its schemes were pre-let or pre-sold.
Across its construction business, 72% of its targeted 2023 order book had been secured. The firm it had suffered delays thanks to supply chain difficulties but that work on key schemes such as the £42m Heart of Sheffield project and the £47m build-to-rent Kangaroo Works, also in Sheffield, was due to be completed this summer.
Tim Roberts, chief executive officer, said: "We have started the year well and following the uncertain economic backdrop to the final quarter of 2022, there are growing signs of recovery in our three key markets. We expect this to continue, and for us to have a busy second half of the year. We also continue to make progress against our medium-term strategic targets."
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