Riding out the recession - Cavanna Homes report a successful year with rising consumer confidence in new homes

The South West’s largest independent homebuilder, Cavanna Homes, have reported their second best ever year for sales of new properties and say the company is going into 2010 with reservations “significantly” up on last year.

Despite the recession and the general slowdown of sales on the open property market, last year was the second best in the company’s 87 year history, beaten only by sales in the boom year of 2007. Sales of open market new homes in 2009 were on a level with 2008, netting the Torquay-based company £20million for 103 open market sales. In addition to this, a record 36 plots were sold by the social housing division last year.

Marketing Director Jonathan Cavanna said; “Although we are still in a recession, the housing market has been improving in recent months.  Our net reservations for new properties in 2009 were actually 21% higher than in 2008, which has definitely boosted the order book and provided us with an excellent springboard into 2010.” He added; “During a recession, and at a time when there aren’t as many properties on the market as usual, homebuyers recognise the value of buying a new build. Not only are there deals to be had and NHBC guarantees, the running costs of new houses are considerably lower than older buildings.”

Commenting on the outlook for Cavanna Homes, Jonathan Cavanna said; “Unlike some other developers, we went into the recession cash positive, with money set aside for a rainy day. The land market has generally been weak but there have still been opportunities for investment and without such stiff competition, we have made some substantial acquisitions.

In June 2009, the Cavanna Group secured 22 acres of land close to Plymouth Airport from the Sutton Harbour Group to build 375 dwellings over the next seven years. Funding from this deal has helped to secure the long-term future of Plymouth Airport.

At Down Thomas, a village in the South Hams near Plymouth, the Cavanna Group has secured a site for the proposed development of 30 houses, similar to the very successful village style homes they built nearby in 2003/2004.

Work will begin in Spring 2010 on the development of 14 substantial detached homes at Blue View in Lyme Regis, West Dorset, which have a spectacular outlook.

Cavanna Homes has secured a long term option on four acres of land at South Brent within the Dartmoor National Park for mixed village style properties.

Also within the Dartmoor National Park, planning permission has already been granted for 11 social houses on a brown field site at the centre of old Liverton (near Bovey Tracey),  to the rear of the Old Pottery Yard. The properties will provide a third of the identified local need for low cost rentable property within the Ilsington Parish.

In Somerset, Cavanna Homes has entered into a collaborative agreement with the South East developer Martin Grant Homes for a 500 plot development at Wembdon, a village at the foot of the Quantock Hills.

Cavanna’s Head of Land Simon Longthorpe said; “We are being perceived locally as one of just a handful of developers who are active in land acquisition and open to land deals which means that we are in the relatively unusual position of vendors coming to us.”

Going into 2010, Cavanna Homes have a total of seven sites in development in Devon, Somerset and Dorset. They are; The Salterns at Bideford, Millbrook Mews at Milborne Port near Sherborne, Foundry Mews at Tavistock, The Green at Bere Alston, Richmond Court in Taunton, the final phase of Evolve at Torquay and the first phase of Cobham Field at Plymouth Airport.