Legal & General agree sale to investment companies
After weeks of speculation, Cala has been sold by owners Legal & General to investment company Sixth Street Partners and Patron Capital.
Patrol Capital formerly owned Cala before selling its stake to Legal & General six years ago for £605m.
Cala is Britain’s ninth biggest housebuilder, completing almost 3,000 homes in Scotland and England and employing around 1,500 people.
Today’s announcement is excellent news for Cala. The acquisition by Sixth Street Partners and Patron Capital demonstrates confidence in Cala’s business plan and growth potential, as our talented team continues to build high quality, sustainable new homes throughout the UK.
Kevin Whitaker, Chief Executive, Cala
Planning approvals fall to a decade low
The latest Housing Pipeline Report by the Home Builders Federation (HBF) has revealed that planning approvals for new homes have fallen to just over 230,000 units in the past 12 months; the lowest figure for any 12-month period in the last ten years.
And, in the year ending June 2024, 10,400 sites gained planning approval – the lowest 12-month figure since the report began in 2006.
Neil Jefferson, HBF’s CEO, said: “The steep fall in planning permissions starkly illustrates the challenge the new government faces to boost housing supply. Whilst the speedy interventions on planning are very welcome, there are a number of determinants on housing supply levels.”
Average prices creep up in September
Rightmove published its latest house price index this week, reporting that average new seller asking prices rose by 0.8% in the month of September, bringing the average property value to £370,759.
The monthly increase is double the long-term average as buyers spot a “window of opportunity” as mortgage rates trend downwards.
Meanwhile, latest figures from the Office for National Statistics for July 2024 found that house prices increased in the month by 0.6%, and over the year by 2.2%, with the average property worth £290,000.
Average prices in the 12 months to July increased in England by 1.6%, Wales by 2.0% and Scotland by 6.0%. The average house price in Northern Ireland increased in the second quarter of the year by 6.4%.
House prices in England rose the most over the year in the North East (3.8%). House prices in London continued to slide, falling by -0.4% in the 12 months to July.
Housing View 