Henry Boot feels impact of homebuyers’ scheme

The Government’s Help to Buy scheme allows people to get a mortgage with just a five per cent deposit as the Government guarantees the rest of the deposit

Sheffield-based Henry Boot, which completed the acquisition of the former Terry’s Chocolate Factory in York earlier this year, said it is in detailed negotiations with a number of different operators to take the 400,000 sq ft development forward.

Planning permission for a range of residential, office and leisure uses has been secured and work could begin on site this year.

The Terry’s factory site has been regarded as a major re-development opportunity, since production ended in 2005 with the loss of more than 300 jobs, when US parent company Kraft transferred production to Europe.

The former factory site will provide much needed living space to help counter the city’s affordable housing crisis.

Yesterday Henry Boot said trading over the past four months has been in line with expectations and reflects the slow improvement the group is seeing throughout its UK property markets.

The group said expectations for the year ending to December 31 are unchanged although the timing of a number of agreed land sales which are working to completion will be difficult to predict.

The company believes the new homes land market is likely to get stronger moving forward.

It added that the streamlining of planning regulations is producing a more certain and consistent decision-making process, which is a marked improvement on the earlier system.

The group completed two disposals at Mansfield and Nuneaton over the past four months. In addition it has agreed terms to sell a further seven sites, a number of which should conclude before the year end.

Seven new sites were bought during the period and total land holdings now equate to over 9,700 acres.

Planning permissions or “minded to grant” approvals were won on eight sites for 1,735 plots. A further eight applications totalling 2,440 plots are currently at appeals.

It also has undetermined applications on 24 sites totalling 6,131 plots and 32 consented sites available for disposal totalling 8,887 plots.

The group said the first phase of the redevelopment of a listed former wire mill, in partnership with Calderdale & Huddersfield NHS Foundation Trust, is now substantially complete.

The specialist fit out work to create a new dedicated 50,000 sq ft office and out-patients facility, pre-let to the Trust, will start on site early in 2014 and take about a year to complete.

Planning permission was secured for a change of use on a 18,000 sq ft retail warehouse unit in Clifton Moor, York.

A new longer lease on higher rental has been granted to Pure Gym, the health and fitness operator.

In Henry Boot’s construction division, the group said it has very strong presence in the social housing sector with long-term frameworks in Doncaster, North East Lincolnshire, Manchester, Sheffield, Barnsley and Leicester.