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26 property


Housebuilding: the major role SMEs have in driving growth on the South Coast


It is well known that the pace of new building has not been keeping up with the rate of household creation in this country. However, what is not as widely publicised is the extent to which the housebuilding industry has been striving to close this gap, writes Malcolm Wilson, director of real estate finance at NatWest


Private sector housebuilding in England has achieved robust growth in recent years, with 111,000 new homes completed in 2015, 20% more than were completed in the year before that. The trend is set to continue, with 119,000 homes started in the year, an increase of 83% since the depth of the recession in 2009. The picture is mirrored across the UK as a whole with the latest available figures showing an annual net addition of over 170,000 homes to the housing stock, a year-on-year increase of 25%.


The major housebuilders have played a huge part in this growth, with the five largest firms completing over 55,000 homes between them in the past year. However, if the country is going to get close to achieving the 220-250,000 new homes required each year, SME builders will also have a vital part to play. Building on smaller sites that may not be economically viable for the larger housebuilders or delivering niche products that require specialist skill sets. Yet there were 46% fewer housebuilders registered with NHBC in 2015 than there were in 2005.


If the industry is to continue to close the gap between household creation and housebuilding, SME builders who wish to do so need to be given appropriate support to expand their businesses and increase their capacity. NatWest is committed to the industry and already supports the building of around 20,000 new homes each year, a majority of which are built by SMEs.


Throughout the south of England, we work closely with the leading regional and national developers. Our local Hampshire and Dorset team supports more than 140 residential developers who are currently building more than 1,675 homes across 220 sites. These range from single units to 100-home developments, with prices


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starting in the low £100,000s rising to more than £4 million per home. We pride ourselves on the partnerships we build with our clients which is built on our flexible approach which is reflected in our ability to support such a broad range of projects.


NatWest has worked closely with the Winchester- based housebuilder Metis Homes on a number of developments over the past seven years. Our proactivity in getting to understand its business ambitions is recognised and appreciated by managing director Adam O’Brien, who told us that “the support provided by NatWest has been solid throughout and their responsiveness in particular to land opportunities that require swift action has been a key part of the dealmaking process for us.”


We recently funded a landmark scheme that Metis is developing with Waitrose in the heart of Guildford. Arranged above a new Waitrose store, the Bellerby Apartments feature striking contemporary architecture and sleek interiors, with nearly every apartment opening on to a private balcony or spacious terrace.


It is always rewarding to see how often our clients’ schemes can literally transform and enhance their communities, both in terms of building quality new homes for people to live in but also in creating long-term employment. Often this requires great care and an innovative approach to the planning process, alongside the wider regeneration considerations. We are consistently impressed by our clients’ vision and what they can create. And as their funder, it’s incredibly gratifying to be part of the process.


As well as improving the lives of those who live in them, new homes create jobs and support


THE BUSINESS MAGAZINE – SOLENT & SOUTH COAST – JUNE 2016


businesses across the economy. The Home Builders Federation (HBF) estimates that each new house built supports more than four new jobs. In the longer-term, desirable and affordable new homes help to drive regeneration, attract investment and improve the built environment for the benefit of all residents. NatWest is proud to support the housebuilding industry in their vital work.


NatWest is sponsoring the Housebuilder of the Year Award at the 2016 South Coast Property Awards. This award recognises developments that have a real economic benefit, respect the environment and show how good design can create places where people want to live, both young and old.


Details: Malcolm Wilson 07769-963294 malcolm.wilson@natwest.com


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