•  Richard Heath Chris Spedding Carly Burrows 

     House Building – Sector focus

    Authors: Richard Heath, Chris Spedding and Carly Burrows – House building team
    Publication date: 01.08.2010

     
    House building continues to face challenging times. While we believe that the macro-economic outlook for the UK has improved, the consensus across the industry is that we are not out of the woods yet.

     
    On the positive side, the second quarter of 2010 saw the highest growth for the industry since 1963, with an increase of 6.6% compared with a 1.6% fall in Q1. In fact, the construction sector’s recovery helped the overall UK economy record a 1.1% rise in Q2 GDP growth, almost twice the rate anticipated by analysts and nearly four times the pace of growth in Q1. However, this is tempered by market sentiment that this may be as good as it gets, with the impending spending cuts likely to have an impact on the next set of quarterly figures.

     
    Government’s desire for ‘localism’ likely to undermine planning 

     
    While the strong figures are welcome news for UK house builders, they come at a time when the government is communicating its vision for UK housing. Visibility for the sector has certainly improved since the general election, but the government’s stated aim to move towards ‘localism’ is already having an impact on the planning process, and the potential for a planning hiatus while the new housing policy is implemented concerns many in the sector.

     
    At Lloyds, we work with clients to help provide a stable financial platform upon which they can base their strategies for future growth. To achieve this, the house building sector team, led by Richard Heath, along with Chris Spedding and Carly Burrows, strives to understand the issues facing the industry. The team has in-depth experience of the UK house building market and the broader construction industry, and spearheads the bank’s interaction with major companies in the sector. Our debt capital markets franchise, coupled with the financial markets division, plays a critical role in supporting our clients working capital/balance sheet management and ensuring risks are appropriately hedged.

     
    It is important for businesses to stay close to their banking partners in times of economic and political uncertainty, and we are always on hand to give advice and support. We look forward to seeing the industry return to a path of strong growth and will be striving to act as lynchpin to help facilitate this.

     
    Source: This article was first published in Lloyds Banking Group - Perspective Magazine Edition 2.
     

2/17/2018 7:29:51 PM