In association with
SEKHON GROUP OF COMPANIES
While the cost of living crisis and the interest rate increase and high inflation has made a big impact on the property and real estate sector, but has not deterred the Sekhon Group from continuing to develop apartments, renovate houses and carry out newbuild work in the Yorkshire district.
Sekhon Group CEO, Mr Iqbal 'Simmy' Sekhon, explained that the first adverse impact on the property business was when utility costs spiralled out of control due to the war in Ukraine, an issue he brought this to the attention of our now prime minister Mr Rishi Sunak, when he was the Chancellor of the Exchequer, and explained that there would be dire consequences which would adversely affect the property market.
Mr Sekhon cautioned that the full consequences of this inflationary increase has yet to have been experience by the country, and there may be latent consequences and issues which will unfold, especially when we get closer to the winter months.
The Group experienced some of the lower income families having to cut back substantially and try and renegotiate a rent reduction. However, while sympathy of landlords for the tenants exists, this became increasingly difficult when the second blow hit the economy and interest rates increased from half a percent to 5%.
Mortgage borrowing
More recently, it was reported in the media that the average cost of mortgage borrowing had increased to 6.6% for a two-year fixed rate mortgage.
These huge increases have had a knock-on effect, in that the company itself has experienced substantial outgoing increases, leaving less for bottom line profits across the group.
Mr Sekhon is hopeful that this rate will return, in the coming months, to a more sustainable level at 2.5%, rather than the 5% currently being experienced, and it is his view that half a percent was always too low and not sustainable for the long-term, but he feels that the government did not prepare the UK economy for such increases over such a short period of time; 13 consecutive increases within a period of six months.
Despite these hikes and increased living expenditures; the Sekhon Group have committed themselves to completing the 22 house conversion at the former Bellevue school at 189 Manningham Lane, Bradford, which is an impressive grade 2 listed structure. In fact Mr Sekhon’s mother Mrs Harmesh Kaur attended school at this place of education.
Development opportunity
The property was almost abandoned by the education sector, and there was an attempt to revive and use the premises again as an education institution by an Islamic school, but due to the high costs of maintaining such a building with insurance and other operational costs; the Islamic charity had to sell approximately three years ago, when Mr Sekhon saw the opportunity, that others missed in that the existing structure could be used as the envelope, subdivided in such a manner that would make 22 beautiful six-bedroom townhouses situated in the Bradford district on Manningham Lane, where there is a high demand for large properties.
Option to rent
The Sekhon Group have confirmed that these properties, in the first instance, would be rented to families, but they would consider selling them to allow other people to share in home ownership in the city.
Mr Nirmal Singh, the chairman of the group, has further committed to commencing the development of St Andrews Mill, Legrams Lane, which is a former textile mill last operated by Initial Textiles. The property will comprise of 48 well-balanced apartments, which would be suited to the local area and would provide adequate two and three bedrooms.
The Sekhon Group pride themselves on raising the standards of housing, especially apartments which they have made a significant contribution in the Yorkshire district having already completed in excess of 1,400 apartments.
This development does not stand alone in the Bradford district as the Sekhon Group, with their trusted joint-venture partners, Dr Samir Khan and Mr Balbir Singh, Panesar, D L. (a former chair of the Chamber of Commerce), have made a commitment to convert Aire Valley House, the former head office of the Bradford and Bingley, situated at Crossflatts, into 142 apartments.
Higher quality housing
The lovely surroundings of this property, allow for a higher quality, prestigious more luxury development, and this would be accompanied subsequently by other houses within the grounds, subject to planning permission.
Mr Sekhon has, with his business partner Mr Kami Sodhi, developed Stanley Mills in Milnsbridge, Huddersfield, to create a further 60 plus apartments the top two floors having already been completed and occupied with the upper ground floor and lower ground to be completed by the end of the present month.
Simmy Sekhon said: "It is important to develop more higher quality housing which allows for the aspirations of growing families with higher incomes to move into, thus freeing up more accommodation at the entry level, and which is more affordable."
The Sekhon Group have continued their forward vision and have also submitted planning applications for other properties within the district, including prospect house in Huddersfield, 44 Chapel Street and Caspian House, both in Little Germany. Little Germany itself has attracted the attention of many international filmmakers.
Mr Sekhon added: "All of this has been extremely difficult in recent times as the cost of materials has increased, in some cases by 50% across-the-board, taking an average together with the increased costs of labour to carry out these these developments."
This, combined with the increasing skills shortage, has also been a problem, and Mr Sekhon urges those within the district who are responsible for employment and enhancement of skills and giving opportunity to young people to push this agenda without reservation, because it will impact on future growth of our city and the region.
Yorkshire Asian Business Association
Mr Sekhon is proud of his links with the Yorkshire Asian Business Association, which supports opportunities within the community. It pursues a hands-on approach to business and employment within the Yorkshire region.
Notwithstanding these very difficult times for everyone, Mr Sekhon has expressed his commitment to continue the charitable works undertaken by the Sekhon Group including the support for much needed food banks, hospices and, on the lighter side, contributions towards the local Horsforth fete.
Mr Sekhon is also very proud that his friend and colleague for many years, Mr Zulfiqar Karim DL, has become the first Asian to be appointed to the position of the High Sheriff of (West) Yorkshire, which is a fantastic accolade for the entire Asian community.
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