2025 Business Predictions: Iain Hibbert, CEO, Devello Group
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Iain Hibbert, CEO at Devello Group.
In 2025 the UK property market is projected to experience moderate growth, influenced by factors such as easing borrowing costs, stamp duty changes and regional variations. However, these factors are susceptible to change as the impact of the Autumn budget works its way through. Key predictions include:
Mortgage Rates: Average two- and five-year fixed mortgage rates are projected to decrease to around 4% by the end of 2025, enhancing buyer affordability and confidence.
House Price Growth: House prices are expected to rise by 2% to 4% in 2025, driven by reducing mortgage interest rates.
Stamp Duty Land Tax Changes: From 1 April 2025 SDLT thresholds will be lowered, increasing moving costs for many buyers. This may lead to a surge in transactions before the deadline followed by a potential slowdown.
Investor Considerations: Increased SDLT surcharges for second homes and potential regulatory changes may influence investment decisions, particularly in the buy-to-let sector.
Rental Market: Rents are forecasted to rise by approximately 17.6% between 2025 and 2029, outpacing wage growth, due to persistent supply-demand imbalances.
Planning and Development: Due to the significant “shake up” introduced in the form of the new National Planning Policy Framework 2024, and the Government’s pledged commitment to delivering 1.5 million new homes, activity in this sector is expected to be both significant and buoyant with land promotion taking centre stage. This may be hampered however by the ability of the planning system to cater for the increased volume of applications and appeals.
Overall, we think the 2025 UK property market is set for steady growth, with regional disparities and policy changes playing significant roles in shaping market dynamics, despite what is expected to be a year of general economic stagnation.
Full steam ahead for Loughborough Town Deal following delivery of £27m of investment
Loughborough Town Deal is on track for a big 2025 as more projects are due to be completed and get underway, meaning more millions of pounds of investment for the area.
The Town Deal is backing 11 projects after securing £16.9 million from the Government’s Towns Fund and, in total, they are worth more than £40 million of investment.
Last year marked the completion of key schemes including the restoration of the John Taylor & Co Bellfoundry, new market stalls for Loughborough Market, a revamp of the outdoor space at Queen’s Park café and new events like Music in the Park being held in Southfields Park.
Work also started on the Generator arts and culture hub and the installation of the Hope Bell in Queen’s Park.
With other completed projects, including the upgrading of two kilometres of canal footpaths, the expansion of SportPark, and the regeneration of Bedford Square, almost £27 million has been invested into the area through Town Deal projects. This includes Government and partner funding.
Town Deal Board chair Martin Traynor OBE recently visited the Great Central Railway in Loughborough, which is also due to benefit from Town Deal support to the tune of £280,000.
Great Central Railway is using the funding to create a new space for school visits, improve welfare facilities for staff and volunteers, and add a train-driving simulator.
Martin said: “We are really excited for 2025 as Loughborough Town Deal projects continue to progress.
“We are anticipating work starting on the Digital Skills Hub at Loughborough College, the completion of the Generator and improvements at Great Central Railway.
“It was great to visit the railway and hear more about the project. It is a fascinating place and something Loughborough is proud of. I am pleased the Town Deal can invest in its future and support the visitor economy and preserve our heritage.”
Malcolm Holmes, Great Central Railway’s general manager, said: “We are investing in the future of Great Central Railway by improving the visitor and educational experience, which will help young people understand the country’s steam train heritage.
“We are grateful for the support from Loughborough Town Deal and look forward to completing the works, which are focused on the Locomotive Shed. We believe it will greatly improve the site for staff, volunteers and visitors.”
The Digital Skills Hub at Loughborough College will help to enhance the digital skills of the local workforce. It is receiving £2.6 million of Town Deal funding.
The Generator project is transforming a derelict 1930s building in Packe Street into a vibrant cultural centre for creative industries and community arts. The project received £1.6 million of Town Deal funding.
The Living Loughborough and Lanes and Links projects being led by the Council also continue and involve a number of different schemes. This year will see the completion of the Hope Bell and improved footpaths in Queen’s Park, a new canopy installed in Southfields Park and the addition of information screens in the town centre, alongside improved electrical infrastructure in the centre to support events.
Medical company lets over 40,000ft² at Junction 28 of M1 for new distribution centre
Over 40,000ft² of prime space has been let just off Junction 28 of the M1 Motorway to an expanding medical company.
Medequip, a leading provider of community equipment services to local authorities and the NHS throughout the UK, has taken the space, in a deal agreed by Tim Gilbertson, Director at FHP Property Consultants, acting on behalf of Legal & General.
Medequip required a new distribution centre to consolidate operations from sites in Alfreton and Derby, and as a net zero carbon property, the space will also contribute to the business’s own decarbonisation.
Tim Gilbertson, Director at FHP Property Consultants, who concluded the deal on behalf of the Landlord, said: “What a lovely start to 2025 this is, this prime Grade A refurbished space at Junction 28 has created a lot of interest and I am delighted to see that we have now completed the letting to a strong covenant as they expand and relocate to continue their position as the UK’s leading supplier of community equipment services to both the local authorities and the NHS.
“A long term lease has been secured on the building which created good interest after extensive marketing with its recent net zero carbon refurbishment adding attraction to the occupier eventually secured.
“This again shows a lack of similar available stock now in the marketplace but hopefully as the year progresses there will be more opportunities of similar calibre available in the market.”
Andrew Firth, Medequip’s Operations and Commercial Director, said: “Medequip required a new distribution centre to consolidate our operations from existing sites in Alfreton and Derby which service our Derbyshire and Derby City Community Equipment Service contracts.
“The net zero carbon property will contribute to our own decarbonisation aims as well as providing a more efficient and convenient centre for our local colleagues and customers.”
Tim Gilbertson concluded by adding: “Hopefully, this letting is a good sign of a successful year to come for the industrial and distribution market throughout the East Midlands and with ongoing demand and limited space, we hope to bring news of further similar deals shortly but as ever, there is a demand for more space to come to the market to meet ongoing enquiries.”
PEAK gateway resort breaks ground
The PEAK gateway resort on the eastern boundary of the Peak District has broken ground, with Phase One scheduled to open to visitors in 2027/8.
Consented on 283 acres of reclaimed former opencast land, PEAK proposes the UK’s first purpose built national park gateway ‘resort town’.
PEAK Gateway will offer visitors facilities and services as a base from which to access the trails and attractions of the 550 square mile National Park. Similar to a ski resort, PEAK Gateway has visitor mobility at its heart. PEAK’s mobility system will link up the trails and country lanes of the Peak District without the need for a car and help establish the area as the largest integrated off and on road cycling and hiking region in the UK.
Planning approvals totalling 1.8m sq ft have been granted to facilitate a multi-branded mixed use development available to both day and stay visitors. The approvals offer extensive experiential retail, a wide range of leisure and educational facilities, a wellness clinic with operating theatres, 2,850 car parking spaces and up to 2,000 hotel rooms and 250 holiday lodges. The development has consent for its own energy park.
PEAK Gateway will be delivered by way of an incremental and phased ground leasing strategy. Heads of terms have already been agreed for the first two anchor plots with Colliers acting as Real Estate Adviser and leasing agents for Birchall Properties, the land owner. Phase One represents in the region of 30% of the consented development and is scheduled to open 2027/8.
Fully implemented PEAK has the potential to achieve a development value of over £1bn and sustain thousands of jobs. Around 70% of the reclaimed estate will be set aside for continued biodiversity gains as well as offer nature connectivity to encourage people’s engagement and delight in nature.
Sheffield City Region granted £2.85m for the construction of the now completed resort public highway access from A61 interchange at Sheepbridge and the new public rights of way around the resort estate.
The commencement of land formation works continues the delivery of the outcomes promised by the grant. Booths Group have been appointed lead contractor for the land formation activity.
Councillor Tricia Gilby, Leader of Chesterfield Borough Council and Acting Chair of Destination Chesterfield, said: “PEAK offers an opportunity to use formerly open cast land in a way that supports nature but also creates new opportunities for our residents and increases the number of visitors coming to Chesterfield. It is great to see work starting on site and I look forward to seeing the development progress.”
Scott Knowles, CEO of the East Midlands Chamber of Commerce, said: “PEAK’s gateway manifesto provides the opportunity for regional businesses to participate in the construction and operation of a world class ESG exemplar enterprise celebrating and making available the cultural and natural assets of our region.”
Jo Dilley, Managing Director, Visit Peak District and Derbyshire, said: “The PEAK Gateway development, is a transformative project that will redefine the visitor experience in the Peak District. With the introduction of high quality serviced hotels, we will be able to cater to more groups and international visitors, offering world-class accommodations and amenities.
“The sustainable transport solution at the heart of PEAK will not only enhance the visitor experience by providing seamless access to the park’s trails and attractions but also significantly reduce car traffic in busy hotspot areas, a change that will be warmly welcomed by local residents. This development marks a significant step towards a more sustainable and enjoyable future for all who visit and live in and around the Peak District.”
James Shorthouse, Head of Alternative Markets at Colliers Real Estate, said: “We are delighted to have advised PEAK, and to be delivering exciting new developments bringing visitors and employment to Chesterfield and the East Midlands region of the UK.”
Matthew Booth, Founder of The Booth Group, said: “This is a three year programme for Booth’s and perfectly complements our specialism of regenerative land solutions bringing challenging landscapes back into beneficial use. We are thrilled to be part of the iconic Peak Gateway development, activating the UK’s growth potential through the regeneration of land for local communities and legacy value.”
Rupert Carr of Birchall Properties said: “From the outset PEAK has been a land first business, over 30 years and millions of pounds has been invested in the revival of the former opencast estate and the obtaining of now implementable planning permissions.
“It’s great to finally be underway and to be involved in a regenerative enterprise capable of activating and sustaining clean growth in the regional visitor economy.”
Sixth new recruit for Link ICT
Link ICT has expanded its team further following the appointment of Daniel Woodward as an IT Technician. This will be the company’s sixth new addition in just under a year, increasing the total number of employees to 17 people.
In his new role, Daniel, who lives in Chesterfield, will be providing on-site IT support to Link ICT’s growing client base of schools, academy groups, and businesses based across the East Midlands region.
Daniel previously worked for Currys Plc where he started as an instore IT support technician helping customers define their needs, setting up laptops and giving customers one-to-one tutorials on their new devices.
He later transferred to the regional hub in Newark and became a regional repair technician where he worked as part of a team repairing IT equipment and recycling components from many different devices including laptops, desktop towers, all-in-one PCs, and televisions.
Prior to this he was the IT Systems Administrator for a small chain of local hotels, where he helped to design networks, implement solutions for complex issues, and train staff how to use the equipment. His role also included a project to install in-room wifi access.
Commenting on his new role, Daniel said: “I have loved working IT ever since I did my work experience years ago when I visited local schools and helped the local IT technician with similar tasks to the role I will be doing at Link ICT. This was a wonderful experience, and I have never once regretted my career choice.
“Obviously, there are now huge technological differences, such as working with Cloud Servers and Mobile Device Management systems, but I am sure I will thoroughly enjoy the role, and I look forward to helping clients and adding to my skills and experience.”
In his spare time Daniel has a huge number of interests, from quizzing to creating websites, digital design, mobile application development and desktop application development. He also has a keen interest in motorcycles and helicopters.
Link ICT was founded in 2004 and recently re-located to new offices in Pride Park, Derby.
Sales grow at Dunelm
Dunelm Group, the Leicester-headquartered homewares retailer, has seen a rise in second quarter sales.
According to a trading update for the 13-week period ended 28 December 2024, sales grew by 1.6% to £490m, in a challenging market.
It sees first half sales reach £894m, a 2.4% increase, with the business’s furniture categories performing particularly well. “We are pleased with this solid performance in a market which remained volatile,” Dunelm shared.
Nick Wilkinson, Chief Executive Officer, said: “We’re pleased with our performance in the first half; we are growing sales and volume, with customers again responding well to the value and choice we offer across our ranges.
“At the same time, we’ve made significant strategic progress across multiple initiatives which are helping us to improve our attractive, specialist offer and continue to gain market share. We have taken our first steps outside the UK with the acquisition of 13 stores in Ireland, opened our first inner London store in Westfield, and made further improvements to our online customer experience which is contributing to continued strong digital growth.
“As we move into the second half of FY25, we have successfully launched our Winter Sale which is being well received by customers seeking amazing value across a wide choice of relevant products for the colder months. As we navigate this challenging environment, we see even more opportunities to harness our unique business model, raise the bar on our proposition and fulfil our ambitions as The Home of Homes.”
Revenue slips at Ibstock in challenging year for construction markets
The CEO of Ibstock, the Leicestershire-headquartered manufacturer of building products, has praised the business’s “resilient performance” in 2024, in a new trading update, despite a dip in revenue.
Full year revenues at the company are expected to have decreased by 10% to approximately £365 million, in comparison to £406 million in 2023. The decline comes in hand with 2024 being a challenging year for UK construction markets, with total UK brick deliveries expected to be over 30% below the 2.5 billion recorded in 2022.
Ibstock highlighted a progressive improvement in sales volumes across the second half of 2024, with revenues in H2 2024 being 3% ahead of the prior year period and 6% ahead of H1 2024.
Adjusted EBITDA for 2024 is expected to be approximately £79 million.
Joe Hudson, CEO of Ibstock PLC, said: “We are pleased to have delivered a resilient performance, consistent with the guidance we gave at the half year, in a market where revenues continued to be impacted by subdued activity levels.
“This result reflects our active management of capacity and cost, continued disciplined pricing and a progressive improvement in demand across the second half, as expected.
“Looking to 2025, we expect a further improvement in market volumes to build through the year. We made good strategic progress during 2024 to add efficient and sustainable new capacity to our network and we will continue to bring capacity back into production selectively to support our customers.
“We see a significant opportunity for a new era in housebuilding in the UK and with the investments we have made and our market leadership positions, the Group remains well placed to support this over the medium term.”
Heritage Fund supports final phase of museum transformation project
The National Lottery Heritage Fund has announced its initial support for the final stage of transformation at a Leicester museum.
Development funding of £411,111 has been awarded to Leicester City Council that will allow it to work up its latest plans for Leicester Museum & Art Gallery in more detail, before it applies for a full grant of more than £5 million next year.
Made possible thanks to National Lottery players, the funding means that the council can now develop its proposals for a scheme that would complete the refurbishment of Leicester Museum.
Plans include two brand new galleries that would focus on the people and the events that have shaped the city’s history over the past 2,000 years, new teaching spaces, and a major new environment gallery that would cover themes such as natural history and climate change.
The new gallery would mean a welcome return for some of the animals in the city’s natural history collection, with new displays and new interpretation reflecting the changes in attitude to the environment that have taken place over the last 20 years. The animals have been in storage since the Wild Space gallery closed last year.
As part of the Voices of Leicester project, an extensive activity plan would also be rolled out to engage with local communities, ensuring that those who live in the city today can help shape the museum’s exhibits and events.
Thanks to the funding, the council will now appoint design teams to develop detailed schemes for the new galleries and carry out some initial public engagement activities to help it work up its final proposals. An application to the Heritage Fund for a full grant of £5,234,445 will be submitted in spring/summer 2026, which – if successful – would fund the new galleries.
Assistant city mayor for culture Cllr Vi Dempster said: “Leicester Museum has been welcoming people for more than 175 years, but the old building has needed ongoing investment to bring it up to the standards of a modern visitor attraction.
“Over the past 10 years we’ve been upgrading the infrastructure of the building, installing new lifts and ramps, for example, to improve access to all areas of the museum – and this week, we’ve started work on a major scheme that will create a new suite of art galleries, a new shop and a brand new café.
“But this initial funding from The National Lottery Heritage Fund is the icing on the cake.
“Thanks to National Lottery players, we have the opportunity to complete the refurbishment of Leicester Museum with a project that would include two new galleries that would delve into the city’s 2,000-year history, and an important new gallery that would focus on key environmental themes, including climate change.
“We’ve called this our Voices of Leicester project because listening to what people want to see and do at Leicester Museum is so important, if the museum is to continue to be relevant to visitors from all of Leicester’s communities.
“We’re extremely grateful to The National Lottery Heritage Fund, whose support will help us ensure that every gallery and every space at Leicester Museum offers visitors an exceptional experience, allowing us to reach even more people within Leicester and beyond.”
Robyn Llewellyn, Area Director, England, Midlands & East at The National Lottery Heritage Fund, said: “We are pleased to support Leicester City Council with their ambitious plans for Leicester Museum & Art Gallery’s redevelopment.
“Thanks to National Lottery players this project will create new opportunities to engage Leicester’s communities with heritage and spark discussion, learning and enjoyment.”
Fusion energy development gets £410m investment
Researchers developing cutting-edge fusion energy are being given investment of £410m investment to kickstart economic growth.
The funding will support rapid development of the UK fusion energy sector over the next two years, with investment in the skills needed for scientists, engineers, welders and programme managers to enter the cutting-edge industry. Fusion already supports at least 2,400 jobs in the UK, with thousands more to follow as the technology advances.
Industry leaders have been shortlisted by UK Industrial Fusion Solution
Mayor for the East Midlands Claire Ward said: “This is fantastic news for Nottinghamshire and the East Midlands, a region that’s ready and willing to lead the way in clean, green energy.
“I am delighted the government is committed to this investment in the East Midlands and look forward to working together to kickstart a green industrial revolutions, creating skilled jobs in our former coal mining communities.”
Five construction and engineering bids have progressed to the next round of the UKIFS competition to deliver the prototype fusion energy plant by 2040, driving progress towards the commercialisation of fusion in the UK to supply families and businesses with secure, clean and unlimited energy.
Professor Sir Ian Chapman, UK Atomic Energy Authority (UKAEA) CEO, said: “I am delighted by the strong support from government to delivering fusion as a safe, sustainable energy of the future, and to anchor this exciting new industry in the UK.”Office building let at The Triangle
A major office deal has been completed at one of Nottingham’s most prestigious addresses.
The transaction has seen the 4,055 sq ft building on the NG2 Business Park, on the fringe of Nottingham city centre, let.
The two-storey building sits alongside existing occupiers including Experian, Mercedes Benz, Jaguar, Land Rover, Pentland, Specsavers, Staffline and VF Northern Europe.
Charlotte Steggles, Director at NG Chartered Surveyors, brokered the deal on behalf of a private landlord client. Amy Howard of FHP Property Consultants acted for the new tenant.
Charlotte said: “This is a great outcome for both the new occupier and our forward-thinking landlord who has continued to invest in The Triangle.
“This city fringe location combines the benefits of city centre premises with the attraction of a modern business park environment that also provides good access to the city’s main arterial route, and this deal shows that demand for high quality office space is very much alive and kicking in the city.”
Amy said: “We are pleased to have successfully assisted our retained client in securing their office suite after an extensive year-long search for the ideal fit for their requirements.
“NG2 Business Park, located on the fringe of Nottingham city, offers a prime location with nearby amenities such as cafes, bars and restaurants as well as excellent transport links and secure parking. The business park provides the perfect out-of-town office space within an in-town location.”
