Property group, Harworth, has said the residential market in Yorkshire and the Midlands is seeing improved affordability with falling mortgage rates and accelerated real wage growth.
However, the Rotherham-headquartered business notes this is tempered by historically low consumer confidence and the impact of the UK’s October Budget on businesses.
In a trading update ahead of its annual general meeting today, Harworth also said the UK-US trade deal, in combination with the 90-day pause in trade tariffs, is expected to bring some respite to volatile markets and should be positive for its own operations.
Lynda Shillaw, chief executive, said: “Following a record year in 2024, with significant operational momentum across all parts of the business, we continue progress towards the delivery of our targets of £1bn EPRA NDV by the end of 2027, and growing our Investment Portfolio to £0.9bn by the end of 2029.
“Despite a global backdrop that is more volatile and challenging today than two months ago when we last updated the market, we entered 2025 on a robust footing.
“We continue to bear fruit from the investment made in scaling our business and we are taking advantage of the particularly dry weather to advance enabling and infrastructure works, supporting our priority of increasing the direct development of Industrial & Logistics stock.
“Our management actions of unlocking the underlying value of our extensive land bank and growing our scale and financial flexibility – by increasing our development of modern Grade A Industrial & Logistics assets – will help to insulate our business amidst the ongoing geopolitical and economic uncertainty.”
Harworth says it has major ongoing industrial and logistics projects under way at Skelton Grange (Leeds), Gascoigne Wood (Selby) and Gateway 36 (Barnsley).
The business notes its land bank underpins its ability to deliver its targets. As of 30 April, Harworth’s industrial and logistics pipeline increased to 34.1 million sq ft (Dec 2024: 33.6 million), and its residential plots stood at 30,763 million sq ft (Dec 2024: 31,264 million sq ft).
Following a record year for residential plot sales in 2024, Harworth’s sales programme for 2025 is underway. The group has completed, exchanged or is in advanced legal negotiations on over 1,000 plots.