Good morning,
The Treasury has banned Michael Gove’s department from increasing capital spending, over fears that it wasn’t delivering value for money. The Department for Levelling Up, Housing and Communities will now have to ask permission from Number 11 before writing any capital spending cheques, however small.
Not that this appears to have put Gove off the brief. It transpires that he was offered a promotion to science and technology secretary ahead of yesterday’s reshuffle, but turned it down to stick with levelling up. The new department is expected to be a focal point for prime minister Rishi Sunak’s attentions, in much the same way that levelling up was for Boris Johnson.
The growth of the BTR market has been halved by rising costs, labour shortages and economic uncertainty. The total number of homes in the BTR pipeline increased by 14% in 2022, half the 28% growth the sector has posted since 2017.
But Grainger is expecting a “year of record delivery“, as it pushes through £1bn of BTR homes.
Premcor Estates has gained planning consent for 402,000 sq ft of office and industrial space at a site in Darlington, County Durham. The privately-owned developer bought the 24-acre plot for “Fabric Darlington” speculatively 18 months ago.
Real estate credit investment manager Hilltop Credit Partners has hired Claudiu Gheorghita, a former Nomura director, as chief investment officer. She will be tasked with building the residential-focused firm’s loan book across the UK and driving its expansion in Europe.
Flexible workspace provider x+why has signed to operate 60,000 sq ft at Santander’s new HQ in Milton Keynes.
As Apprenticeship Week continues, we hear from one starting in the industry. “I had even been told an apprenticeship was far less valuable than a degree,” writes Karina Gargrave, an apprentice buyer at L&Q. “Looking back, that could not be more wrong.”
Meanwhile, Amal del Monaco, head of asset management at Patrizia, writes about why ED&I initiatives are vital. “I am acutely aware of the fact that many professionals continue to find this industry intimidating.”
Barratt Developments has posted a rise in revenue of 24% in a trading update this morning, but its forward sales have fallen by a third.
And the cheapest five-year fixed-rate mortgage has fallen below 4% for the first time since early October.
And finally, yesterday’s reshuffle not only created four new government departments and failed to move Gove from Levelling Up, it also gave us the 15th housing minister since the coalition – and sixth in the last year. Lucy Frazer’s stint in the post was by no means the shortest – that title is still held by her predecessor Lee “one month” Rowley. So, how long will the new broom Rachel Maclean last? Place your bets!
