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unable to operate within the PHE guidelines then? I am unable to locate a government directive that states construction sites must close. Surely the implementation of new site rules that are fully compliant with the PHE guidelines, would enable sites to be operational? What's the difference between industrial/commercial constructions sites, that remain operational and house builders that aren't - in their working practices?
https://www.gov.uk/government/publications/further-businesses-and-premises-to-close/further-businesses-and-premises-to-close-guidance#businesses-and-premises-that-must-remain-closed
Hi Erv
The main reason for the housing sites are closed is because they are on a wait to see!
If they can’t sell they won’t build them, also supply of materials, there’s normally about two weeks worth on site. Once it’s gone it’s gone . As ibstock have stopped making bricks and blocks, I would imagine the other suppliers to be the same. So a wait and see policy is in place. If it goes on to long there will be a change of view!
Thanks for that Ben, there must be a lot of part built homes out there, that had already been sold off plan. Wait and see.
ERV hi,
That is a good point regards to many buyers purchasing "Off Plan" and have a date in mind to move and plans to do so in respect to selling their existing home !!!!!!!
Yeah, gone are the days when builders just built houses as fast as they could and hoped to sell them. It’s effectively build to order these days, and if sales look wobbly then they slow down or stop. They won’t carry stock. The trick will be to defer pending liabilities ( land purchase agreements) due this year. That’s the one big thing which will help builders survive in good shape.
Tom, there appears to have been a general lack of clarity of the government guidelines. Construction workers cannot possibly work from home. The government guidelines don't stop them. If PHE guidelines can be adhered to and the employers adhere to all guidance for their employees - including their subcontractors - then if the workers are fit and healthy and free of symptoms and happy to carry on, in order to stop the economy and their own finances collapsing, why shouldn't they. Are we saying the brick manufacturers are unable to operate within PHE guidelines?
Wigs Hi,
I agree with you but you know TW.
TW ( with positive cash ) might see buying more land while others hold off as an opportunity and may get it a lot cheaper ?? Land is Gold as they say and must be a future good investment for TW, not doing much in the banks, and this very bad time will pass please God.
Hope you are keeping well
ATB
Tom :-))
ERV hi,
Yes I agree with you and a few on here have said they know that a few sites are still open but the time is limited as they are running out of basic materials and can not get more so eventually these sites will close too. What a mess we are all in :-((
Keep well and lets hope we see some light at the end of the tunnel very soon.
ATB
Tom :-)
Tom, wasn't it the case that the house builders closed their sites and then the brick manufacturers acted by closing their factories? From a supply and demand perspective. If houses were bought off plan, are part built/finished, and the factories were still producing bricks, the government hasn't closed down construction, then why couldn't those already sold be completed? When things return to normality, there must surely be a huge lag due to the delayed unfinished works that will have a further knock on effect in getting things running smoothly. This isn't about building a stock of unsold properties its about finishing what you started surely?
ERV1-How can they carry on working without materials?A lot of builders merchants have had to close.Don't know about brick manufacturers,but you still need sand and cement to lay bricks.Lots of different components needed to build a house.Absolutely impossible to carry on building until things return to normal,whenever that might be.
If you look at ibstock rns concerning covid 19 that’s your indicator!
Closing a site can't be done immediately, any unfinished stock will have to be made weathertight, if it isn't it will lead to quality issues later
Hi bamps
You are right about the houses having to be made weather tight. That’s why the initial shut down was for three weeks. Then I think they will take stock and see what materials will be needed where. Now me I will be laughing because there’s two gangs on site, all plots started are HA’s so I would imagine they would be the ones pushed on , about two months work bit more maybe with walls. So expect to be back in a couple weeks. But who knows:)))
HI Tom
Well, Wimps have stopped all discretionary land spend until further notice. However, their cash position is not as strong as other builders. For example BKG. In round figures Wimps have around £250M in cash, they are committed to around £600M in liabilities this year (around £340M land and the rest suppliers, pensions). They have drawn down their revolving credit facility of £550M, giving them just short of £200M assuming no more income and they honour all their commitments until end of year.
However, they will still get some cash coming in from a few sales completing and maybe a few bulk sales to investors, albeit at reduced margins. Assuming UK GOV, honours 80% wages commitment then Wimps on the hook for £60M if all employees paid until end year. IMHO, difficult as this COVID 19 is for the elderly and infirm, I believe it will blow through and we will slacken off with restrictions in four to six weeks. At this point business and life will start to get back to normal. I say this because, I don't believe UK GOV will be able to maintain this lockdown any longer as people will increasing ignore, once testing gets underway (and this is to UK GOV's shame that its taking so long) many people will have the antibodies and cautiously get back to work. We will see.
WIgs Hi,
Yes totally agree and lets hope testing proves to be negative for most in the near future and this pest clears up and lets everyone back to work. I don't think any of us thought it would go so far and most seem fed up at staying at home as it is, well most of my mates are and can not wait to get back to work as they are being hen pecked all day now LOL.
Keep well
ATVB
Tom :-)