Chancellor seeks to boost economic growth
This week saw the new Chancellor announce steps the Labour government will take to “fix the foundations of our economy” and “grasp the nettle” of the planning system.
In her first speech in the new role, Rachel Reeves reconfirmed the government’s commitment to delivering 1.5 million homes over the next five years and reform the National Planning Policy Framework, including reinstating mandatory housing targets.
Reeves also vowed to prioritise energy projects and create a new task force to boost stalled housing projects representing more than 14,000 homes.
We will not succumb to a status quo which responds to the existence of trade-offs by always saying no, and relegates the national interest below other priorities.
Rachel Reeves, Chancellor of the Exchequer
Be in no doubt – we are going to get Britain building again.
Meanwhile, Angela Rayner has removed the term ‘levelling up’ from department and ministerial titles, labelling it a “gimmick”.
The Department of Levelling Up, Housing and Communities, rebranded by Boris Johnson in 2021, will return to its former name of the Ministry of Housing, Communities and Local Government.
Vistry on target to reach 18,000 homes a year
Volume developer Vistry said it is “confident” of building more than 18,000 homes this year, with the group’s Partnerships model showing “resilience”.
In a trading update for the half year to 30 June 2024, the firm said its adjusted operating profit is set to increase by around 10% on last year to £227m (H1 2023: £207m).
Total build completions in the half year have also increased by 8% to 7,750 units.
Meanwhile, Barratt completed just over 14,000 homes in the year to the end of June, and expects completions to fall in its next financial year to around 13,000.
A trading update issued this week said that “underlying private sales activity has remained sensitive to mortgage availability and affordability”, but reported an improved rate of private reservations per outlet per week at 0.58 (2023: 0.55).
Directors of Crest Nicholson have said they are “minded to recommend” an improved bid by rival Bellway, after weeks of offers.
The latest offer of around £720m would see Crest Nicholson’s shareholders hold an 18% stake in the combined group.
And finally, Pete Redfern – ex-Chief Executive of Taylor Wimpey – is to become the new Chief Executive of builders’ merchant Travis Perkins.
Redfern, who led Taylor Wimpey for more than 14 years, will take over the role in September, when present incumbent Nick Roberts steps down.
Housebuilding boosts construction output in May
Latest figures from the Office for National Statistics have revealed that a 2.8% increase in new housing was a driving factor behind an overall 1.9% rise in construction output in May.
Both private and public new housing increased in the month, which also saw infrastructure new work rise by 3.5%.
However, over the three months to May 2024, total construction output is estimated to have fallen by -0.7%, mainly due to a decrease in new work of -0.9%.
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