Although it has been some time since we last updated you all, a lot has been happening here at Newstone. COVID was a difficult time for us all and although we saw the market improve for a time, we are now facing higher interest rates with stubborn inflation.
We continue to work with our clients across both commercial and large residential projects, supplying architectural cast stone solutions. The quality of our support throughout all stages of a project remains one of our key differentiators and is a vital component to our service. With a dedicated team from an architect, to a great builder and high quality cast stone we are helping our client build unforgettable buildings and homes. We look forward to working with you on future projects. Let’s get into it! Firstly, may we at Newstone Advisory wish you all a very happy, healthy and prosperous 2018. I think quite a lot of companies (ourselves included!) are pleased that 2017 has come to an end. We knew going into the year that we would face a number of socio-economic headwinds and these manifested themselves through a clear decrease in consumer confidence which reduced the number of sizeable projects being started in the year.
However, the optimist in me looks forward to the positives that 2018 promises to offer our industry. Towards the end of 2017 we began to feel the benefits of the Chancellor's National Productivity Investment Fund, which started deploying capital across new infrastructure projects which will continue to provide our industry with a great boost over the years to come. Interest rates look as though they will stay at historically low levels and this coupled with the stamp duty cuts should continue to help first time buyers get on the property ladder. Finally, new home building numbers continue to rise; 2017 saw more than 200,000 homes coming on to the market which is still some way below the government's target of 300,000 per year. We would expect to see construction activity continue to pick up during the course of 2018 to meet this short fall. From a personal perspective, we hope to be able to build on the positive momentum we experienced during Q4 of last year where we received more inbound enquiries during these final 3 months than the preceding 9 months put together! Investors should feel assured knowing that large infrastructure projects are on track to be started in 2018 with valued property developers still being commissioned. We continue to believe that property owners don’t simply want to create 'functional buildings' they want to create something to be proud of, and this is where the architects, planners and designers can make a profound difference. The use of stone on buildings is becoming ever more fashionable again as we see it being employed on numerous projects across London. The durability, quality and elegance are all contributing factors that help these new buildings stand out. We look forward to continuing our conversations with you all as 2018 looks to become our busiest yet. Geoff Our industry need not fear 2017. It is a great time and opportunity to make this year one of the best yet. Although some large scale building projects have been put on hold due to uncertainty around how the U.K. will deal with Brexit, building still continues, not only in the major cities but also in the countryside - people need houses. While we expect the broader market to take some time to adjust to the new future that lay ahead of the UK economy, we do also expect to see market activity picking up as we move into 2017. We would not have shortages of skilled labour in the construction industry if it was in a severe slump. In some instances, we have seen that many bricklayers are now earning more than architects and taking home up to £1,000 a week. The large companies are turning to invest in building high rise flats and large affordable housing sites. This change leaves opportunities available for architecturally designed houses for the keen private developer, creating more jobs and more opportunities. I remain encouraged that the new Government has signalled its commitment to infrastructure by embracing the three Hs – Heathrow, HS2 and Hinkley Point – despite strong lobbying in the summer to cancel all of them. In my opinion, this is a bullish signal for UK infrastructure in 2017 which in turn should provide further opportunities across the broader economy. Construction industry CEOs need to keep focussed on the prize of achieving competitive advantage through offering their clients greater efficiency by investing in technology and skills, in the long-term this industry will be owned by those who go out and achieve these goals. Lets all get out there and make 2017 the year to remember. Geoff Our industry has observed a marked slowdown in the build up to the Brexit with many large scale building projects being put on hold due to uncertainty around the outcome of the referendum. Travelling across our capital there is evidence of large construction sites which have been cleared but are eerily silent and without the usual presence of building activity.
In addition, foreign investors have been waiting for uncertainty to subside before completing their large investment operations in London. A recent example of this is the real estate arm of Union Investment, the German investment company, who said it had delayed buying an office building in the City of London because of the risk of Brexit. “The reason we stepped aside was that it was a speculative project and we don’t want to take any higher risk in this situation,” the company said. Other foreign investors from the Middle East who are so regularly quoted as great supporters of our national real estate market have also been delaying projects and purchases, especially across the capital. The value of residential property in upmarket areas popular among Middle Eastern investors - including Chelsea, South Kensington and Knightsbridge - fell between 3.5 and 7.5 percent on the year in May, according to estate agent Knight Frank. While we expect the broader market to take some time to adjust to the new future that lay ahead of the UK economy, we do also expect to see market activity begin to pick up again as we move into the second half of 2016. We look forward to a busy time ahead and appreciate your continued support. Geoff Newstone Advisory is my attempt (and I think it could be an industry first) to provide impartial advice to those looking to purchase stone for any construction project.
Having worked in the cast stone industry for more than 20 years, I know from personal experience that finding your perfect stone supplier can be very time consuming. Ensuring that the quality of the stone meets your standards, arriving on time and within budget can be a painful experience. At Newstone Advisory, we leverage our large network and long standing supplier relationships to achieve the best possible deal for our clients, managing the process right up to delivery. We would love to hear from you if you have any questions about how we operate or how we could help you with any of your projects. Geoff |
geoff Beslee
Managing Director of Newstone Advisory Limited with more than 20 years experience in the construction industry. |