The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Wow this is really going down isn’t it!?
Lizz and Kwasi destroying the £ and the economy especially our sector it seems.
Market needs some action from the government / BoE urgently for us to stop falling imo. Wasn’t long ago we can put with some brilliant performance metrics all looking good to this.
Hold tight pick up some cheap shares I suppose!
I agree with you both regarding trades pay and lack of benefits.
I’m not a tradesman I am in project management.
Some materials are cheap and is completely false as the material fails/needs repairing at a greater cost - why not just use a decent product in the 1st place!?
Regarding kit houses - I believe the Canadians and north Europeans build a lot of these? These guys must be the experts perhaps we could do a lot of learning from them and how they do things.
I totally agree mate. I prefer traditional method and would much rather buy one than a kit form. The sad truth is we’re just not going to get the numbers in this way. Depends what is seen as the overarching priority. It’s a shame, what young people want to get into construction these days. Work your *******s off have a bad back/elbow/shoulder etc and struggle when you get to your 40s.
Didn’t take it as you having a go, think we’re saying the same thing! Annoys me when the outsiders say build more, quicker, better, cheaper but then don’t suggest the actual methods to do it
WiganWarriors
Why do you think building more social homes is the answer to creating a prosperous building sector?? They pay a massive discount to us builders as is part of the land deal pre construction. I don’t understand your logic of build more at a smaller profit margin? Maybe I’ve missed something.
IMO the land available isn’t the problem, I have never heard any builder / person within construction quote this being a reason why we don’t produce the national target numbers. The simple truth is lack of labour lack of material and I believe the traditional construction method is not the way forward to get the numbers, although I prefer the method it does not help with speed and volume
Richierich
Interested to hear you solution to the UK not being able to build 320k houses? Why do you think we cannot secure the labour or materials? Do you work in construction?
Ben Rumpson very interesting to see you have gone through the last 2 recessions whilst a working person. What do you predict will happen during this predicted downturn? Seems to me like there isn’t an actual fundamental reason for the incoming one? More of a supply/demand/inflation/recovery kinda mix up?
It’s great that the demand is there don’t get me wrong I love it. I agree Ben, not many young people are looking to get in. It’s a shame, they would earn a hell of a lot of money if they did. Unfortunately it looks to me like the only way to be able to get anywhere near the high volume targets the government wants is to go with a new building technique; pre fab, more timber frame etc, perhaps re purposing shops/offices?
Will be interesting to see what will be tried to get closer to the numbers
How!?
Limited/expensive labour
Materials shortages (boilers atm)
Transporting materials around the world is difficult now
We’re building as quick as possible right now. We can’t build more without radical change
Interesting to see what happens.
Material costs going up
Labour rates going up
I dare say production levels won’t be amazing with delays shortages etc.
Energy prices and inflation seem to be the main threats to house price raises. Once these are controlled surely the house prices will rally once again?
Results will show best ever build rate for TW and profit. Caveat with the news will be raising costs and difficulty around sourcing materials and labour. I don’t think the price will change much. If there were no threats over the next 6 months think it would jump a bit. Sorry to be a negative nelly.
Hi Ben.
Yes we are being affected but with good planning from management and commercial/buying teams of TW playing their part I think this isn’t being dealt with fairly well.
Plumbing and roofing - yes I have experienced this, down to metal, plastic and roof tile shortages. But again these are being well managed and not really affecting build rate imo.
Completely agree with you in regards to manufacturing products within the UK! Would be great to see.
Good luck mate.
Interesting views all round. Here’s my opinion for what it’s worth....
Material shortage - it is an issue but from what I can see it is being managed and as someone quite rightly said TW and other large builders I believe will receive the least impact both in terms of supply and price. Contracts with big builders to suppliers are extremely important to the suppliers - more so than small ones as they have more business with them. Buying power of TW is massive.
Stamp duty holiday phasing out/ending. Somebody said a while back that this same scenario has already taken place in Scotland and didn’t seem to impact demand.
Property prices pulling back - absolutely agree this is happening. Prices are still very good and can’t see them falling to less than say 2018 levels at the worst - surely if the prices of properties, volume of sales and margins are similar to say 2018 levels the share price should also reflect in line?
I think the lack of confidence in the inflation rate is the main issue but with the material shortages/increases in price, declining property prices and stamp duty holiday is enough for there to make enough people sell/stay away from buying.
I think the price is very low right now but maybe I’m biased/stupid/nieve.
DIMI
Wow that really is interesting to hear!!
I think you are correct regarding the stamp duty holiday ending muting uk house builder share prices but as you say that hasn’t stopped activity in scotland so maybe a couple of months down the line will show the market how strong the sales rates are.
At the beginning of the year I did think that we wouldn’t get to pre covid levels but now I believe similarly to you that we should get above that level before YE.
Half year results will be interesting. From what I can see there hasn’t been stronger production rates coupled with high prices and high sales volumes. I hope that will be the kick start for all house builders to see a strong rise in H2!
Just saw a very interesting YouTube video video from Berkshire Hathaway 2021 agm with Warren Buffet commenting on the rise of steel and timber prices.
I wonder if this news is filtering through and negatively affecting share prices.
Strange times - production through the roof sales going well yet a stalling share price
Markets have taken a battering overnight from the US. Could pull back slightly today. I couldn’t find my crystal ball though just my opinion. Better to buy small and then see if a fall comes. If it does buy with the rest you had in mind.
All the talk about about consolidation although interesting doesn’t have anything to do with the Barclays price increase outperforming lloy. There hasn’t been a consolidation or dilution by both banks since covid.
One view of barc having more exposure to more of a global or at least US exposure seems justified as Wall Street is +20% pre covid levels whereas ftse is -10% pre covid. So what do you guys think to this? Do you think that Wall Street is too high, ftse too low or both indices levels justified and correct?
Ilikehousebuilders
I’m talking about the general numbers as and when they get reported throughout the year.
My belief is that metric is probably the most important and at threat currently. Less people in work means less money, less money in people’s pocket means less spending.