Strathclyde Homes

Source: Construction Digital

Date :13/06/2008 09:01:55

Exec talks to Strathclyde Homes’ technical director Alistair Farquhar and learns that although UK housing is struggling, the company is weathering the storm

Written by Ian Armitage and Produced by Nicholas Davies

It’s hard to get away from. The housing market is struggling; many fear a major crash is around the corner. Indeed, the global credit crisis is beginning to hit lenders and that is having a knock-on effect on the property market and the economy, leading to talk of debt, repossession and the prospect of a housing crash. This is having a negative effect on house builders – many of whom are putting projects on-hold until conditions improve.

“The housing industry is feeling the effects of the credit crunch,” explains Alistair Farquhar, technical director at Strathclyde Homes. “We have been affected just like everybody else has. It is one of those times that you just have to ride out and be realistic in your business targets.”

There is a lot of negativity surrounding the credit crisis and falling house prices in the UK. But the state of the economy and falling house prices have been a big issue for some time, so it isn’t a new thing. The Bank of England has cut interest rates in an attempt to weather the storm, but – for a variety of reasons – this is not being fed through as lower mortgage rates for consumers.

Indeed, most banks and other financial institutions have been forced to cut the number of new mortgages offered to customers after experiencing funding difficulties themselves. “It isn’t all doom and gloom,” stresses Farquhar. “We do have some exciting projects in the pipeline that we expect to start later in the year.

“The problem is though that nobody knows what the future will hold. There are some early indicators that some of the lenders are beginning to introduce some new mortgage products into the market. It is only a small step so far, but at least it is a step in the right direction.” Despite the positives, Farquhar adds: “There is a long way to go particularly when you consider consumer confidence is pretty low.” As a result, he says Strathclyde Homes aims to position itself in the “best possible position” to capitalise on opportunities when the market returns to normal.

So who is Strathclyde Homes?

Strathclyde Homes is a privately owned property company with solid business foundations and an efficient management structure. It is a major player in the newbuild market in Scotland, and has already built in excess of 1,100 homes since it started trading in 1990.

The firm’s unique slogan is “Strathclyde Homes – Built Around You” and its many industry awards are testament to its prominent position in the property market. “We are one of Scotland’s leading property companies,” says Farquhar. “We are divided into several divisions including New Homes, residential letting, commercial property and Strathclyde Timber Systems.”

Today, the privately-owned property company’s headquarters are suitably based in central Scotland, which is where the Strathclyde Group conducts all its main business. Over the years, Strathclyde Homes has built up a strong customer base of repeat clients and blue-chip companies – who return year after year. Why? Well for one, it is highly innovative.

Innovation is an integral part of the company’s strategy and is encouraged in thinking and in practice by every employee, partner or business associate. This drive for excellence demands the best and the best is what it delivers.

Currently the group has seven new homes developments and four in the pipeline which are planned to commence soon, but “the credit crunch could delay them slightly”, according to Farquhar.

All guns blazing

Despite concerns over the credit crunch, the company is constantly looking for and acquiring new land – in an attempt to be ready once the market takes an upward turn. “We are still looking for new land but the banks have imposed stricter lending terms and tightened up on their parameters. Again, that affects us,” says Farquhar.

Looking ahead, Strathclyde Homes Group is determined to further consolidate its position in the private residential housing industry despite the current downturn in the market. “Our philosophy is to position ourselves to be ready for when things change, because they will change and I think that those that prepare for it getting back on track will benefit most,” says Farquhar.

Although the short-term outlook is gloomy, the housing market looks set to hold firm despite the problems caused by the credit crunch and it should avoid an 80s-style crash. Up until the crisis, almost without exception, Strathclyde Homes sold every new home before it was even built. That is testament to the quality and customer appeal of a Strathclyde home and the company will surely enjoy future successes.