County Life confident of surviving credit crunch

Sep 12 2008 by Chris Knox, The Journal

A HOUSEBUILDER which focuses on building rural homes for retired people believes it will be able to escape the downturn in the housing market after completing a number of new sites.

Northumberland-based County Life believes its strong reputation in the ‘grey’ market will prevent it from hitting hard times, unlike many of the region’s house builders.

It has just completed work on a number of countryside developments, including 30 luxury apartments at Shotley Bridge in Consett, which are valued at £160,000 each. It has also just finished a £5m development at Seahouses, Northumberland, with the 20 apartments boasting views of Bamburgh Castle and the Farne Islands.

The firm, which was set up by John Swanson in 1999, now believes it will be able to maintain its £4m turnover despite the pitfalls of the credit crunch and is set to begin work on a £5m development of 14 apartments in Corbridge, Northumberland, and has just secured planning permission for a £2m block in Hexham.

However, Mr Swanson insists the jewel in the company’s portfolio is the £7m Malthouse development in Alnwick.

The structure, which will eventually incorporate a mixed use development for both residence and local businesses, incorporates an existing listed kiln tower and mill with modern design.

The 33 apartments, which start at £180,000, are linked together by a central atrium which connects the listed buildings and the new, with its five office suites built over five levels incorporating lifts to all floors from the car park underneath.

Mr Swanson, who acts as director of County Life, said: “Of course, I would be lying if I said that things hadn’t slowed down to a small extent.

“I think everyone is feeling it at the moment and, as such, we are not looking for much growth this year.

“Having said that, we have a healthy number of jobs going on at the moment and are confident of remaining competitive in our chosen market as the current economic conditions have not affected older house hunters as much as, say, young families.”

The firm, which contracts out most of its building work to national firm Rok as well as Lumsden & Carroll Construction in Bowburn, County Durham, has no ambitions to expand into new markets, but remains committed to the North East’s retirement market.

Mr Swanson said: “There could be a point where it becomes commercially viable to look at other markets, but as things stand, it looks unlikely.

“We would find it difficult to compete with the likes of Barratt and Persimmon and, likewise, I think they would find it hard to compete with what we do. It’s about sticking to what you do best at the moment.”