Cheshire Independent Issue 187

MAY 2024 16 Independent BUSINESS PROPERTY lender Together will provide funding for the delivery of thousands of additional homes across the UK with the launch of its first £150million development finance facility. The Cheadle headquar- tered lender, which has a loan book of £6.8bn has announced its inaugural securitisation facility for development lending, which will unlock the additional finance needed for build- ing projects. This will include experi- enced small and medium sized regional developers undertak- ing housing schemes, student accommodation, care homes, social housing and mixed- use projects. Together, which has its own development finance team, has funded the delivery of more than 7,000 homes over the last five years. However, Britain is cur- rently facing a housebuilding crisis with a backlog of 4.3mil- lion new homes “missing” from the national housing stock, according to research- ers from the Centre for Cities. Its analysis shows that it would take at least 50 years to fill this deficit, if the gov- ernment’s current ambitions to build 300,000 homes a year in England is met. Ian Pickering, Together’s director of development fund- ing, said: “Our new £150mil- lion securitisation facility will provide a much-needed shot in the arm to housebuilding schemes across the coun- try and help developers fill some of this backlog of ‘miss- ing homes’.” Construction industry skills shortages, inflation in the cost of materials and labour, a flat lining economy and, crucially, access to finance, are issues which have contributed to a growing shortage in the num- ber of homes, Together said. There have also been diffi- culties in securing planning permission, with approvals for new housing developments and conversions falling to record lows in 2023. However, in its latest report, Opportunities and Out- look; the future of commercial property, Together identified the vast majority of SME prop- erty developers are optimistic about the outlook of their busi- ness over the next 12 months. Ian said: “We know from development and advisory groups for chief executives, key executives and leader- ship teams. Nigel Barratt, partner and head of the corporate finance team, said: “Max has played a leading role in growing our business by successfully com- pleting transactions with UK and international trade buy- ers and private equity buyers. “He is currently working on a number of transactions, has brought new clients to the firm and has built strong relationships with existing ones. He’s passionate about developing teammembers and actively supports and mentors his colleagues. “His promotion is well-de- served and we look forward to seeing Max continue to flour- ish as our corporate finance practice expands further.” Hurst focuses on advising entrepreneurial owner-man- aged businesses with turnover of £10m and above across all sectors. Clients include Lan- cashire County Cricket Club, Stockport based Creamline Dairies andMacclesfield home furnisher Arighi Bianchi. The firmwill move its head office to a new flagship devel- opment in Stockport later this month to accommodate its growing team. Hurst is taking 11,000sq ft at 3 Stockport Exchange, the latest phase of a £145million project by Muse Developments and Stockport Council. It has been based since 1998 in Tiviot Dale in Stock- port town centre, but has out- grown those premises. The new HQ will give the firm scope to expand from 120 staff to around 170, which it aims to achieve over the next three years. THENational LivingWage increased to £11.44 an hour for workers over 21 from the beginning of April. It is the largest ever increase in the minimum wage in cash terms and for the first time it has been extended to 21 and 22-year-olds. Almost three million peo- ple will benefit from the rise, according to the government and the Treasury has said that it will add more than £1,800 a year to the pay of those on full-time contracts. Successive rises also mean a full-time worker on the National Living Wage is now more than £9,000 better off than in 2010. The hourly rate for 18-20-year-olds has risen to £8.60. For 16-17-year-olds the new rate is £6.40 and for apprentices it is £6.40. Alongside these, there have been increases in the statutory amount employees receive if they are off work due to sickness or where they are taking family related leave. The changes mean that from April 6 statutory sick pay was increased to a weekly payment of £116.75. From April 7 the statutory rates for maternity, paternity, shared parental, adoption and parental bereavement pay also rose, to a weekly pay- ment of £184.03. And a day later maternity allowance increased to £184.03. Maximum compensation limits have also risen. The limit on a week’s pay will increase to £700 from its cur- rent rate of £643. This is used to calculate statutory redun- dancy and other payments. The maximum statutory redundancy payment has been increased to £21,000, with service capped at 20 years. The maximum basic award for unfair dismissal has also risen to £21,000 and the max- imum compensatory award for unfair dismissal has gone up to £115,115 - this only applies for dismissals that take effect from April 6. GROWTH measures tar- geted at small firms are a good start and should be built on to get the econ- omy back in gear, accord- ing to business leaders. The Consumer Price Index (CPI) rose by 3.4 per cent in the year to February 2024, down from 4.0 per cent in January – pointing towards a future interest rate cut. Many of the key economic indicators published in 2024 have also shown slight improvements compared with 2023, giving rise to a feeling of “cautious optimism”. Tina McKenzie, policy chair, at the Federation of Small Businesses (FSB), said: “Any easing in inflation brings relief to small firms, and the reported drop is a step towards reducing inter- est rates by the summer. “However, we mustn’t dis- count the cumulative damage that has been done to small businesses’ margins and cash reserves by inflation having been so high for so long. “With the fall reported driven largely by falling food prices for consumers, the hope is that this will ease some of the pressures on household budgets, to the eventual ben- efit of small firms in consum- er-facing sectors. “Small firms ended last year with a decrease in con- fidence levels, indicating that this first quarter would be tricky in many respects.” She added: “In order for any optimism to be nurtured, the promising start signalled by the increase in the VAT threshold to £90,000, the announcement on apprentice- ships and the business rate relief for small firms in the retail, hospitality and leisure sectors should be built on. “What unites these growth-promoting measures is that they are targeted where they will have the most impact: on small firms, who are the ones with the potential to expand and kick the economic recovery into a higher gear. “Measures to ensure employment levels are main- tained and improved are also needed. “Wage inflation has eroded the Employment Allowance’s relative value, underlining the need for it to be uprated, especially with the rise in the National Living Wage. “This will help small employers keep peo - ple in work, and to grow their workforce. “Politicians and policy- makers should remember that small firms have been the driving force behind our recovery from past recessions, and this time around it’ll be no different, if they are given the right conditions to start up, scale up, and prosper.” Positive signs welcome but past damage lingers Living Wage rise comes into force Board role: Max Perry Dealmaker Max is a rising star £150m ‘shot in the arm’ for housing developers our own research that there is a huge appetite from UK small and medium enterprise (SME) house builders for pro- jects around the country. “We’d expect to see this demand continue to grow, supported by lower borrowing rates, a continuing decline in inflation and growing wages. Together’s new funding facil- ity will open doors to even more property developers and help them provide much- needed homes across the UK.” A DEALMAKER at inde- pendent accounting and business advisory firm Hurst has been promoted to associate partner. Max Perry joins the board of the Stockport based firm as a result of his promotion from associate director. He has completed a range of transactions involving UK and overseas trade buyers and private equity buyers since joining its corporate finance team in December 2021 after roles at Deloitte and corpo- rate finance boutique Cam- lee Group. Max is among a group of Hurst’s rising stars who are taking part in a bespoke two-year leadership develop- ment programme. It is the first accountancy firm headquartered in the north to launch a Vistage Inside programme for future leaders. Vistage, with 45,000 members worldwide, is a global leader in personal