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LendInvest completes £16m development deal in three weeks

Property finance lender LendInvest has completed a £16m financing deal with established development finance borrower, Yogo Group, in just three weeks.

The development finance loan will fund the part-conversion and rebuild of a Grade II listed building, the former Thomas Lipton Care Home, as well as the construction of new units.

LendInvest completed this loan in record time of three weeks from initial introduction to site purchase, after the borrower was let down at the last minute by another lender. If finance had not been secured immediately the borrower would have lost the site to another potential buyer.

Steve Larkin, director of development at LendInvest, said: “Time is undeniably crucial for any developer. In this instance it was make or break, with the developer facing the prospect of losing a coveted site to other purchasers having been let down by their initial lender.

“Our team went the extra mile to ensure that this did not happen again, delivering fast, and affordable finance in record time.

“Working with an award-winning developer is always a comfort for a lender, and we have full confidence in the Yogo Group to deliver the quality bespoke living spaces they are so well known for.”

After completion, the project in its entirely will deliver 24 apartments and six houses, ranging from one to four bed units of bespoke design and available for first-time buyers.

The site is in Southgate, Enfield, North London and sits in five acres of its own grounds, providing privacy for prospective buyers and tenants.

Construction is expected to be completed by March 2019. The total gross development value is forecast to exceed £26m

George Philippou, managing director of Yogo Group, added: “Yogo Group is delighted to be working with LendInvest to deliver another one of its high quality residential developments in a unique enclave of Southgate.

“We would like to express our immense gratitude to LendInvest who have been extremely supportive of Yogo Group not only by funding the majority of the scheme but also by achieving the unachievable and ensuring a quick and smooth three week completion.

“The service and support provided by LendInvest and its lending managers have been exemplary.”

Daniel O’Neil of SPF Private Clients introduced and advised on the deal.

Source: Mortgage Introducer

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Worst case no-deal Brexit could see 43,000 fewer UK construction jobs, report says

A no-deal Brexit could see up to 43,000 fewer construction jobs in the UK, according to an economic forecast commissioned by the mayor of London.

The research undertaken by analysts Cambridge Econmetrics has produced a damning report on the adverse effects a hard Brexit could have on the UK economy and various sectors. Sadiq Khan claims the study shows that a no-deal outcome could cost the country half a million jobs and £50bn in lost investment by 2030.

The findings also looked at London alone where increased housing numbers are desperately needed. Experts believe there could be 5,000 fewer jobs and a drop in output of up to £1.2bn by 2030 in the construction sector should the UK decide to walk away from a deal and leave both the EU customs union and single market.

Mayor of London, Sadiq Khan, said: “If the government continue to mishandle the negotiations we could be heading for a lost decade of lower growth and lower employment. The analysis concludes that the harder the Brexit we end up with, the bigger the potential impact on jobs, growth and living standards.”

The analysis looks at the potential impact five different Brexit scenarios could have on nine key sectors of the economy. It shows that every Brexit outcome analysed would be bad for the British economy, but that the harder the Brexit, the more severe the consequences. The worst of the five scenarios postulates a departure in March 2019 with no deal or transition arrangements and researches have estimated this would lead to 482,000 fewer jobs across the entire UK and a loss of £46.8bn in investment by 2030.

“If the government continue to mishandle the negotiations we could be heading for a lost decade of lower growth and lower employment.”
Sadiq Khan, mayor of London.

James Murray, deputy mayor for housing and residential development, said: “This report lays bare the huge risks we would face as a result of Government’s failure to secure a Brexit deal that works for London and the rest of the UK. The fact the Mayor has had do the prime minister’s job in publishing the full impact of Brexit is truly damning. It shows the scale of the blow that a no-deal hard Brexit could have on our homebuilding efforts. London needs 13,000 additional construction workers to build the homes the capital needs – we simply cannot afford to lose skilled European labour.”

The research was commissioned after the Brexit secretary David Davis told MPs in December the government had failed to produce any economic forecasts on the likely impacts Brexit could have. Answering questions from the Brexit select committee, Davis also said no economic impact study had been undertaken before the cabinet decision to leave the customs union.

The Labour mayor was also a strong supporter of the remain campaign and has since argued for the UK to stay in the EU’s single market and customs union. Davis’s admissions in December have said to ignite a drive to produce some research-based evidence of future impacts. While the report’s authors have stressed the figures are reliant on a range of factors, it is the first time analysis like this had been undertaken to delve into the wider impacts of a no-deal Brexit.

Analysis by Melanie Leech, chief executive of the British Property Federation

Not knowing if we’ll have enough skilled workers to resource the construction industry over the coming years is deeply concerning.

We urge government to provide clarity on the status of EU workers as soon as possible – we are already seeing this uncertainty undermine regeneration up and down the country.

Government must get migration policy right if we wish to build much-needed homes and the physical environments capable of driving innovation, which underpin a successful post-Brexit UK.

Source: Infrastructure Intelligence

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New plans to build apartments on old brewery site revealed

The latest stage of plans which could see hundreds of homes built at a former old brewery have been unveiled – with 18 new apartments planned for the site.

An application has been submitted to Broxtowe Borough Council‘s planning department by developer Fairgrove Homes.

The company wants to build the new apartments as part of a wider project to redevelop the site of the old Hardys and Hansons brewery, off Harvey Road, Kimberley.

The former brewery was sold to Greene King in 2006, but it was abandoned five years later and was left to fall into disrepair.

It has since been split into a number of smaller development plots and sold to developers, who could eventually build up to 350 homes on the site.

Another application was submitted to the council in October. This sought permission to build 14 new townhouses in the brewery yard.

Originally the plan was to build a three-storey apartment block of 24 one bed rooms. This was approved in 2015.

But the developers chose to instead revise the plans after some opposition from the public, and the plans were re-submitted to seek permission to instead build townhouses, with the company saying it felt there was “more of a need for family homes”.

Chairman of the Kimberley Chinemarelian Historical Society and Kimberley Town Councillor Roy Plumb, 76, welcomed new of the latest planning application.

He said: “This will make the Kimberley area a lot more attractive for people. It is certainly one of the biggest developments we have had since the Victorian-period.

“Of course it would have been great to keep the brewery, but it couldn’t happend. A mixed residential development was the only viable option.

“The developer is keen to retain the heritage of the site, and is forward-thinking with this. The homes will be in-keeping with the site itself.

“It will develop the site into a 21st century living space, and it won’t look out of place for the area.”

The latest application, submitted in December, seeks permission to develop 18 two-bed apartments in the already existing Grade II listed maltings building.

Planning documents submitted by the developer state: “The alterations to the existing building externally are very little and barely constitute development. They will be very minor and will barely impact on the character or appearance of the area.

“The condition of the building is deteriorating rapidly since the closure of the brewery some plus 10 years ago.

“They [the apartments] will enable the building to be put back into viable usage in the long term, and will bring substantial improvements to the area long-term.”

A final planning decision on both this latest application and the one submitted in October has yet to be made by the borough council’s planning committee.

The brewery was originally opened in 1832 and was the major employer in the town with over 200 employees.

Many of the buildings are from the 1850s and 1860s, although over the years new buildings and warehouses have been continually added.

Fairgrove Homes is already developing 23 new-build homes and four conversions on the another part of the site, including 10 detached houses.

Source: Nottingham Post

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Communities Secretary calls for borrowing to invest in building new homes

A senior Cabinet minister has said the Government should borrow money to invest in hundreds of thousands of new homes in what appears to be a significant shift in Conservative thinking.

Communities Secretary Sajid Javid said ministers should take advantage of record low interest rates to deal with the housing crisis, which is “the biggest barrier to social progress in our country today”.

Asked if Chancellor Philip Hammond was on board with the idea a month away from his Budget, Mr Javid told BBC One’s Andrew Marr Show: “Let’s wait and see what happens in the Budget”.

But his call to borrow more cash to pay for spending on housing and other infrastructure appears to echo Labour’s own “fiscal credibility rule”, which states that the government should not borrow for day-to-day spending but be prepared use it to fund long-term investment.

Asked whether there would be a new housing fund to build homes, Mr Javid said: “We are looking at new investments and there will be announcements.

“I’m sure at the Budget, we’ll be covering housing but what I want to do is make sure that we’re using everything we have available to deal with this housing crisis.

Communities Secretary Sajid Javid
Communities Secretary Sajid Javid (Stefan Rousseau/PA)

“And where that means, so for example, that we can sensibly – you borrow more to invest in the infrastructure that leads to more housing – take advantage of some of the record low interest rates that we have, I think we should absolutely be considering that.”

He added: “I would make a distinction between the deficit which needs to come down and that’s vitally important for our economic credibility and we’ve seen some excellent progress, some very good news on that just this week.

“But investing for the future, taking advantage of record low interest rates, can be the right thing if done sensibly and that can help not just with the housing itself but one of the big issues is infrastructure investment that is needed alongside the housing.”

Mr Javid also suggested the Government would not relax protections for the green belt.

new homes

“I don’t believe that we need to focus on the green belt here, there is lots of brownfield land, and brownfield first has been a policy of ours for a while,” he said.

“There is a lot more that can be done, density is a big issue – if you look at the density of London for example, it won’t surprise your viewers to learn that London has some of the highest levels of demand in the country, the density in London is a lot lower than many other cities, Paris, Berlin, compared to most cities around Europe, so that’s one area where you can expand more.”

At the Conservative Party conference this month, Theresa May pledged to “dedicate” her premiership to fixing Britain’s housing crisis as she announced an extra £2 billion for affordable housing.

An extra 25,000 social homes could be built under the plans outlined by the Prime Minister but her promise was overshadowed by her mishap-strewn conference speech and subsequent Tory infighting, and the party remains under pressure to do more.

Environment Secretary Michael Gove appeared to back Mr Javid’s suggestions, tweeting that he was “v impressive on #Marr”.

Shadow housing secretary John Healey said: “If hot air built homes, ministers would have fixed our housing crisis.

“Any promise of new investment is welcome, but the reality is spending on new affordable homes has been slashed since 2010 so new affordable house building is at a 24-year low.”

Source: BT.com