A raft of big housebuilding sites are being released for sale outside of London as confidence in the regional markets continues to improve and despite the fall-out from the EU referendum.
In a litmus test for the depth of housebuilder demand, and their need to continue bulking up their landbanks, thousands of plots are being marketed after the summer lull.
Knight Frank is releasing a site in Milton Keynes with outline planning consent for 2,400 residential units and a potential GDV of £500m.
It is looking for a strategic development partner to masterplan, build and deliver the project through the Milton Keynes development partnership.
In Warwickshire, at Kingston Grange, Savills is bringing forward a site with planning permission for 1,650 homes, while private equity giant Lone Star is selling plots on its 5,500-home Priors Hall development in Northamptonshire.
Richard Rees, head of UK development at Savills, said: “In terms of sentiment, I think the residential development market outside of central London is pretty bullish and strong… the housebuilders have a robust position, with very little debt.”
Many builders have released results and trading statements showing resilience outside London, with sales barely affected by the referendum. There is a growing business-as-usual consensus, despite share prices still being around 15% down.
In its half-year results last month, Persimmon chief executive Jeff Fairburn said: “While the result of the EU referendum has created increased economic uncertainty, customer interest since then has been robust, with visitor numbers to our sites around 20% ahead year-on-year.”
The UK’s largest housebuilder, Barratt Developments, issued a similarly upbeat sentiment in its annual results, with chairman John Allan saying: “The wider market for new homes remains healthy across Britain.”
Stephen Hogg, lead regional residential director at JLL, said the overriding message coming out of the top housebuilders was that they needed more land.
Much of this growth has been supported by policy, notably Help to Buy. Despite the early mixed messages from Theresa May’s government regarding housing, this still underpins up to 40% of sales among the major housebuilders.
However, there is more caution than before the June vote. One agent pointed out that some sales being agreed are now conditional on reserved matters being approved, or other planning decisions, and the size of deals had decreased.
New sites for sale
Campbell Park Northside, Milton Keynes
Size 293 acres, 2,400 homes
Vendor Milton Keynes Development Partnership
Agent: Knight Frank
Potential GDV: £500m
Houghton Regis, Bidwell, Bedfordshire
Size 410 acres (total scheme), 1,850 homes
Vendor Unknown
Agent Knight Frank (first four plots)
Potential GDV: 500m+
Macclesfield, King’s School, Cheshire
Size Three sites, 450 units on two consented sites
Vendor King’s School
Agent Savills
Potential GDV: 100m+
North Eynsham, Oxfordshire
Size 300 acres, 2,200 homes
Vendor Oxfordshire County Council, Corpus Christi College and private landowners
Agent Savills
Potential GDV £400m+
Priors Hall, Northamptonshire
Size 5,500 homes on 1,000 acres
Vendor Lone Star
Agent Unknown
Potential GDV £1bn
Omega, Warrington
Size 575 acres (total), 1,100 residential (within larger total)
Vendor Omega Warrington, JV between Miller Developments and KUC Properties and the HCA.
Potential GDV £1bn (total scheme)
Kingston Grange, Warwickshire
Size 1,650 homes
Vendor Private landowners and Commercial Estates Group
Agent Savills
Potential GDV £300m+
Eaglescliffe, Yarm, Yorkshire
Size 100 acres, 900 homes
Vendor Unknown
Agent JLL
Potential GDV 300m+
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