Boris Bounce

Savills share price jumped 7% on an announcement that they expect 2020 housing transaction results to be at the top end of expectations. “Looking to the year ahead, increased political stability in the UK should maintain improved sentiment in real estate markets” was their summary to investors.

Many residential agents are reporting the “Boris Bounce” following the general election result with increasing transaction levels. A good year for house sales will only intensify competition for senior staff in house building.

Last year I shot three two minute videos each focusing on a tip to help you maximise your chances of making the best possible hire you can in our candidate short market.

The need to embrace this advice is likely to increase over the next few months as pent up demand for new homes hits the market. So to get the new year off to a great start I have attached links for all three.

I know the content will help housebuilders successfully compete for the staff they need.

If you want further advice on salaries, benefits or anything else recruitment related reply to this email or call me on 0161 924 2384.

Housing Transaction Numbers Sliding

Over the past three years, the number of housing transactions has dropped significantly. 

According to the Q3 2019 edition of the Conveyancing Market Tracker from Search Acumen, there have been over 100,000 fewer transactions in the first nine months of 2019 compared to the equivalent period in 2016.

Unsurprisingly, the political and economic uncertainty during that period is front and centre when looking for causation. 

Andy Sommerville, Director of Search Acumen, said: “Every passing quarter of 2019 has brought more political headwinds to the property market due to Brexit related uncertainty. One hundred thousand fewer transactions so far this year compared to 2016 is an indicator of the ‘Brexit effect’ on an already cooling property market.

The report also cites a shift towards the largest conveyancers with a number of smaller firms no longer operating. In fact, despite overall declining transaction levels, conveyancing volumes are up by nearly 8% quarterly from 228,994 in Q2 to 246,816 in Q3, with a leap of more than 5,500 transactions – more than 10% – for the top ten biggest conveyancers.

Who do you believe? Election 2019

The conservatives are pledging to deliver 1 million homes in 5 years. A quick online search of ONS figures reveals the last time the UK built 200,000 homes in a year was back in the late eighties. And we have built around 880,000 homes in the past five years. 

So how do the conservatives propose the uplift in numbers?: through an overhaul of the planning system to encourage the private sector to increase production.

For Labour, the focus is on affordability. They are promising to build 100,000 council homes a year, which will be directly controlled by local authorities. In addition, they have also pledged 50,000 affordable home to buy through Housing Associations with affordability determined by local incomes. This will be financed by using half of its Social Transformation Fund

Finally, the Liberal Democrats are planning to build 300,000 homes per year with one-third of those being ‘social homes’

Bovis buys Galliford Try Partnerships

Bovis has agreed to buy the housing arm of Galliford Try, currently branded as Linden Homes and Galliford Try Partnerships, for a little over £1billion.

The acquisition will be funded by a combination of shares and cash giving existing GT shareholders a stake in the newly formed business.

The synergies for Bovis are threefold. Firstly, the new business will deliver around 12,000 new homes a year which puts it straight into the top 5 house builders in the UK. Secondly, it take Bovis firmly into the partnerships market offering the business greater diversity. Finally, the established locations of GT Partnerships in the north of England give Bovis fuller geographical coverage.

In his statement, Bovis CEO, Greg Fitzgerald, said: “I am very focused on successfully integrating these businesses in early 2020 with strong management across all business areas, and on delivering the clear benefits from the combination including at least £35 million of synergies as quickly as possible.”

What Our Clients Say

Every recruitment business claims to offer high levels of service, to operate with integrity and provide unbiased advice. If this were true why has the recruitment industry got such a patchy reputation?

The answer: most recruiters’ claims far outstrip their service and delivery.

In a bid to shore up their reputation, some recruitment firms collect testimonials from their candidates. But placed candidates say nice things because they just got a new job and a better salary. And they don’t pay for the service.

So as a fee-paying client looking to employ the services of a recruitment company, are these testimonials a good indication as to what service you’ll receive? I’ll let you decide.

Below are direct quotes from our clients who have all paid for our services to provide them with the best possible people for their businesses. 

And we think what they say, says a lot about us.

“No hesitation in recommending them” 

“Professional, honest and reliable”

“Supportive, engaging and thorough”

“A credit to their profession”

“A highly reputable agency”

“Trustworthy, effective with great integrity”

“Ethical, transparent and diligent”

“A pleasure to work with”

If you feel this positively about your existing recruiters, then I wish you every success with your future recruitment. 

If not contact me on 0161 924 2384 and tell me how we can help you.

Are we having a pre Brexit wobble?

The latest NHBC registration figures would suggest so.

Steve Wood, The NHBC CEO, said “The slowdown in overall registrations in August seems to be partly due to prevailing uncertainties in this pre-Brexit period. Nonetheless, it is encouraging to see growth coming through in the affordable and rental sector.”

The number of new homes to be built for those in the affordable and rental sector in the UK continues to rise significantly but these gains have failed to offset the decline in the private sector registrations.

3,875 new homes were registered in the affordable and rental sector in August, a 17% increase year-on-year (3,252 in 2018), whilst home registrations in the private sector fell 20% to 8,420 (10,460 in 2018).

With the Brexit deadline looming and the prospect of a general election before the end of the year housebuilders will have to work hard to keep their sales rates up in the face of a potential “wait and see” mindset from customers.

Bovis and Galliford Try Merger

It’s not the first time this has been attempted but an increased offer from Bovis for the Linden Homes/GT Partnerships part of the Galliford Try group seems to have got all parties excited. 

There are certainly synergies. 

Firstly, Bovis doesn’t currently have a regional office north of Stafford. The merger would give them an instant presence in the North West, Yorkshire and the North East, all key regional house building markets.

It would also take Bovis’ fledgling partnerships business straight into the premier league on the back of GT Partnerships regeneration market share.

And finally, the divestment of their housing arm would leave Galliford Try as a well-financed stand-alone contractor able to focus on its core business.

The two businesses have agreed terms and are seeking shareholder approval, likely to take around three months. Should the deal proceed the newly formed company would become the fourth largest housebuilder in the UK.

Don’t slip into this trap

From time to time I work with house builders who have a senior level vacancy but get caught in the trap of an ad hoc recruitment process. 

Typically, they are receiving CVs of potential candidates from multiple sources on a drip feed basis. When someone catches their eye they will interview them. When that candidate proves not to be the right person for the job they go back to reviewing CVs as and when and from wherever they emerge. 

The problem is ad hoc recruitment processes aren’t really a process at all.

Here’s why doing it this way feels like a good idea:

  1. It’s not taking up too much time. If you just review the odd CV and perform the occasional interview it’s not a distraction from the day job.
  2. If multiple recruiters are working on it then all prospective candidates will be covered and you will get the right person.

Here’s why, in reality, it’s a bad idea:

  1. Before you know it months will have drifted by and you still haven’t appointed. You will constantly be going back to square one. Each time you interview a candidate and they are not right you are back to hoping the next CV you receive is a good one. 
  2. You aren’t making any meaningful comparisons between possible candidates. If there is more than a couple of days between interviews your ability to make objective comparisons becomes significantly reduced. Do you end up picking the best candidate?
  3. As the weeks slip by, you subconsciously lower the bar in a bid to get the position filled. Your expectations change with time. There’s a very real chance you employ a candidate who is not as good as someone you discounted a couple of months ago.

So, in summary, decide which recruiter you are engaging with, set timeframes for CVs and interviews, all of which will enable you to hire the best candidate in a sensible amount of time.