Editor: After all the recent Westminster antics, it’s good to see some more positive business news emerging from the housebuilding sector.
From Bovis Homes’ point of view, it will create an enhanced platform for its housebuilding business, which will be well positioned to take advantage of higher growth markets such as regeneration projects.
On the other side of the fence, Galliford will be receiving £300m in cash as part of the deal, which will give its newly reorganised construction business a boost and means it is likely to focus on larger infrastructure projects in the future.
Discussions are at an early stage and we’ve already seen one potential tie-up between these two falter, so it’s too early to be certain this will happen or that the terms will remain as currently agreed.
However, with Barratt, the UK’s largest housebuilder by sales, reporting record profits last week, this latest news demonstrates a continued confidence in the sector and that there might well be a life beyond Brexit.
Emma Shipp, partner, Hewitsons