Latest news with #Persimmon
The Sun
a day ago
- Business
- The Sun
Britain's £2.5BILLION newest town next to major motorway is unveiled in blueprint for 4,000 homes, new shops & hotel
BRITAIN'S newest town will be built next to a major motorway and is set to cost £2.5bn with restaurants, shops and sports facilities. The Elms Park development, located in the north of Cheltenham, Gloucestershire, was approved by local authorities yesterday. 5 5 5 Councils have given the go-ahead to the massive new town serving almost 9,000 people. It will be situated on the outskirts of the Cotswolds, just off junction 10 of the M5, and will feature roughly 60 acres for employment land. Tewkesbury Borough Council described the approval of the 4,115 homes as the "biggest decision" it had ever made. And Cheltenham Borough Council also gave the development the green light, despite heavy opposition to the scheme from seven neighbouring villages. The new town is set to take more than 20 years to be developed, with work expected to be completed in phases. The plans include a 25-acre business park, a hotel, shops, cafes, new schools, healthcare facilities and a transport hub. Proposals also include state-of-the-art sporting facilities, including an all-weather 3G pitch on site. Elms Park Consortium, led by house builders Bloor Homes and Persimmon, claims that the project will create as many as 8,000 jobs in the area. It estimates that the development will provide 1,000 affordable homes while generating up to £300m for the local economy each year. The patch of land is outside the green belt and has been allocated for development in Gloucester, Cheltenham and Tewkesbury's joint planning strategy. Calling on councillors to approve the scheme, Rob White, agent for the applicant, said: "Approximately £25m will be spent on community infrastructure. 'It will contribute £300 million a year into the sub-regional economy, creating and supporting over 8,000 new jobs, with 30 apprenticeships a year during construction over 20 years. "Over 4000 new homes will be built, providing for a new community of around 9,000 residents, many of whom will already be living in the area. 'Approximately £50 million pounds will be spent on providing new schools, including a secondary school and two primary schools on site. 'A sports hub containing new facilities for cricket, football, tennis, and an all-weather 3G pitch will be provided on site along with significant contributions to local rugby and hockey clubs. 'They are committed to bringing forward Elms Park as a well-designed, sustainable and healthy place where the new community can thrive.' But locals are concerned that it will bring larger numbers of traffic and overwhelm public services in the area. Cheltenham Civic Society raised concerns over the design of the development. 5 They highlighted potential risks with road safety, parking, flooding and pollution. Also among the opposition is Gloucestershire police and crime commissioner Chris Nelson, who called for the plans to be postponed due to a lack of agreed funding for a new police station. He added that the constabulary was considering legal action over the issue. The councils released a joint statement on their websites confirming the decision yesterday. Cllr Mike Collins, of Cheltenham Borough Council, and Cllr Sarah Hands, of Tewkesbury Borough Council, said: 'Elms Park is one of the largest schemes Tewkesbury Borough and Cheltenham Borough Councils have ever considered. "It has been a long time in the making, having been included as a strategic allocation in the Gloucester, Cheltenham and Tewkesbury Joint Core Strategy. We're pleased that following careful consideration, the detail of this JCS allocation has been approved at both planning committees today after both detailed and thorough debate. 'Over the next 20 years, the project will provide over 4,000 much-needed new and affordable homes, community facilities and commercial floorspace. "It will bring substantial economic benefits in the future whilst also being sensitive to its surroundings, including protecting and enhancing significant areas of valuable green space and biodiversity.'
Reuters
2 days ago
- Business
- Reuters
British home prices to rise 3.5% this year; government to miss 5-year building target
LONDON, May 29 (Reuters) - The outlook for British home prices has barely changed in the last three months on steady expectations for falling borrowing costs, according to a Reuters poll of property experts who said the government would achieve around two-thirds of its construction target. Labour Prime Minister Keir Starmer has vowed to build 1.5 million homes over parliament's term, which ends in mid-2029 at the latest, but the poll median found the government would manage around only a million. None of the 11 respondents to an additional question saw the goal being fully met. Responses ranged from 700,000 to 1.3 million. "The government's pledge of 1.5 million homes by the end of 2029 is a fantasy," said Russell Quirk at estate agency eMoov, who predicted a range of 950,000-1,050,000. "The top 10 house builders neither have the capacity nor the P&L (profit and loss) motivation to deliver." There were around 817,000 housing completions in the five years to 2024, according to government data. The last time there were more than 1 million homes completed in a comparable period was in 1976-1981. British homebuilder Persimmon (PSN.L), opens new tab did, however, say in March it would construct more houses this year and target improved margins after 2024 profit beat expectations, while rival Barratt Redrow (BTRW.L), opens new tab last month reiterated its target to build around 17,000 homes this year. With homes in short supply, the cost of buying one is expected to increase. Nationally, home prices were predicted to rise 3.5% this year, matching a February forecast but above predictions in another Reuters poll for overall inflation of 3.0%. Next year they will increase 4.0% and in 2027 3.5%, the May 19-29 poll of 19 housing market experts predicted. In London, house prices were seen rising 3.0% this year, 4.0% next and 3.8% in 2027. Asked what would happen to affordability for first-time buyers hoping to get on the property ladder, all but two of 15 said it would improve. "Generally, mortgage affordability will improve for first-time buyers over the course of 2025," said Scott Cabot at real estate services firm CBRE. "A continued fall in the base rate, along with an increasingly competitive mortgage market, will generally drive lower mortgage rates in 2025." The Bank of England is expected to stick to one interest rate cut per quarter this year, with the next likely in August and then in November, ending 2025 at 3.75% compared with 5.25% before the reductions began. Urban rents were seen rising even faster than home prices, making it harder for new buyers to save money for a deposit usually needed to get a mortgage. Many people, especially the young, prefer to live in cities. Nationally, urban rents were expected to increase 4.3% this year while in the capital they will rise 3.7%. "We expect rents to outpace inflation over the next few years, predominantly due to the lack of supply in the rental sector, but also due to higher costs eroding landlords' profit margins," said Aneisha Beveridge at estate agency Hamptons. The government's planned Renters' Rights Bill will put additional conditions on landlords while tax changes will also have an impact, prompting some to leave the market. Britain's housing market slowed in April after the end of a temporary tax break on home purchases which had seen buyers rush to complete transactions in previous months, the Royal Institution of Chartered Surveyors said earlier this month. (Other stories from the Q2 Reuters housing market polls)
Telegraph
3 days ago
- Business
- Telegraph
This stock is primed to benefit from Britain's chronic housing crisis
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. The global financial crisis wreaked havoc on housebuilders. Even in its aftermath, a hugely uncertain economic outlook meant that very few investors considered allocating capital to the sector. However, in the following years, housebuilders such as Persimmon generated exceptional returns as their operating conditions improved and the wide margin of safety previously applied to their market valuations gradually dissipated. Now, the company and its peers face a somewhat similar, albeit less extreme, situation. Persimmon's share price has slumped by 58pc in the past four years, with it now trading on a rather modest price-to-book ratio of 1.2. Although it faces an uncertain near-term future that is likely to dissuade many investors from buying it, the company's long-term prospects are becoming increasingly upbeat. Interest rates, for example, have now fallen by 100 basis points since last year's peak. Yet their impact has not been fully felt due to the existence of time lags. When combined with the prospect of further monetary policy easing, with inflation due to gradually fall to 2pc over the medium term, demand for housing is likely to significantly increase as mortgage rates fall, wage growth gathers pace and prospective buyers look ahead to a more buoyant economic period. Furthermore, the longstanding imbalance between housing demand and supply has arguably worsened since the global financial crisis. Housing starts in 2024, for example, amounted to roughly 132,000 units. This is 26pc lower than the previous year's figure and is 5pc down on 2010's total. Given that the UK's population is forecast to increase by around 490,000 people per year between 2022 and 2032, demand growth is likely to continue to outstrip increases in supply. This could result in housebuilders such as Persimmon enjoying higher volumes and increased average selling prices that together bolster its financial performance over the coming years. The company is well placed to capitalise on an upbeat outlook for the UK housing market. Its recently released trading update for the period from the start of the calendar year to 27 April showed that its land bank increased by just over 2pc to 83,800 plots. It also has a net cash balance of around £259m that puts it in a strong position to overcome potential short-term challenges while continuing to invest for long-term growth. The firm's trading update additionally stated that it remains on track to deliver a 6pc rise in completions for the full year. Average selling prices, meanwhile, were up 4pc during the period. The company is currently forecast to generate a 10pc annualised rise in earnings over the next two financial years. This further suggests that its shares remain undervalued following their decline over recent years. Clearly, there is a very long road to recovery for Persimmon's share price. Indeed, it is currently down 53pc since Questor tipped it as a 'buy' during October 2017. In doing so, it has lagged the FTSE 100 index's performance by 66 percentage points. Since our initial recommendation, of course, the company has paid generous dividends. In fact, our income return amounts to 42pc. This means that, on a total return basis, we are down a far more modest 11pc. While still hugely disappointing, this highlights the stock's income potential over a sustained period. Given that it has a dividend yield of 4.5pc at present, with shareholder payouts covered a healthy 1.5 times by earnings last year, the company remains a highly worthwhile income investing opportunity for the long term. In the short run, Questor would be unsurprised if Persimmon's share price exhibits heightened volatility. While inflation is set to fall to the Bank of England's target over the medium term, the central bank anticipates it will rise to 3.7pc later this year. This will almost inevitably prolong the process of monetary policy easing, which means investors in the housebuilder will need to be patient. In the long run, though, they are likely to be handsomely rewarded. The company's solid balance sheet, attractive market valuation and upbeat operating outlook mean that it offers significant return potential over the coming years.
Daily Record
4 days ago
- Business
- Daily Record
Major Cambuslang housing development nears completion
The landmark eight-year project from Persimmon Homes West Scotland has delivered 443 new properties. A major development in Cambuslang that is set to leave 'a lasting, positive legacy in the area' is nearing completion. Castle Gardens is wrapping up after nearly a decade of delivery, providing hundreds of new homes, jobs and significant community investment for the town and South Lanarkshire. The landmark eight-year project from Persimmon Homes West Scotland has delivered 443 new properties, and the sales of its final homes have just been made. As part of the development, 57 of the 443 homes were transferred to South Lanarkshire Council to help local people in housing need. Since construction began, the development has contributed over £2.6 million in investment to support local infrastructure and services, including education, roads, public transport, affordable housing provision and community facilities. The project has supported the local economy by creating a number of direct jobs, along with additional roles in the local supply chain. It has also played a vital role in developing local talent, with more than 10 apprentices gaining valuable on-site experience throughout the build. Among them is Lee Brooks, whose work helped shape the community – and whose family now proudly call Castle Gardens home. As part of Persimmon's commitment to the communities it builds in, thousands of pounds have been donated to local charities and groups, including the Whitlawburn Resource Centre and Friends of Cambuslang Park, through the company's Community Champions initiative. Craig Moore, land director at Persimmon West Scotland, said: 'Castle Gardens is a great example of how long-term development, when delivered thoughtfully, can transform a site and bring real benefits to local people. 'We're proud of the homes we've delivered here and the strong partnerships we've built with community groups, local businesses, and South Lanarkshire Council over the past decade.' Castle Gardens has played a key role in helping meet local housing need, particularly for first-time buyers and families, with Persimmon's homes typically priced 20% below the average for new builds in Scotland. * Don't miss the latest headlines from around Lanarkshire. Sign up to our newsletters here. And did you know Lanarkshire Live is on Facebook? Head on over and give us a like and share!
South Wales Argus
21-05-2025
- Business
- South Wales Argus
Persimmon Homes land deal to bring 174 homes to Caerphilly
Persimmon Homes East Wales has completed the purchase of 12 acres at Virginia Park in Caerphilly, which already has full planning permission. The housebuilder will now submit a revised planning application before beginning groundworks early next year. The first sales are expected to be completed by the end of 2026. As part of a Section 106 agreement, the developer will also make a financial contribution for community infrastructure in the area. Persimmon Homes East Wales managing director, Lee Hawker, said: "Persimmon already have a strong record with local and first-time buyers in Wales, and I am delighted we can now extend our strong offering to people in Caerphilly, through the provision of much-needed, low-cost, high-quality homes. "It has taken a big team effort from everyone in the East Wales business to get this land purchase over the line – I commend them on their brilliant work and look forward to making our plans a reality. "We at Persimmon look forward to working closely with the local authority and the community to ensure our proposals development are soon delivered to a high standard in Caerphilly." Persimmon Homes East Wales already has sites in Capel Llaniltern, Ebbw Vale, Llanwern, and Twynyrodyn, as well as Lydney in the Forest of Dean, and Leominster in Herefordshire.
