Navigating Growth Opportunities in the Housing Sector

This chapter examines the UK government's growth strategies with a special emphasis on the housing market and its impact on investments. It features Volusion, a company thriving in the face of stricter air quality regulations, despite a downturn in new home construction.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

Which UK growth firms have the greatest long-term potential? Prime Minister Sir Keir Starmer has pledged to “turbocharge” his government’s growth strategy after the US’s introduction of new tariffs. It promises to prioritise a handful of growth-driving sectors, including advanced manufacturing, the creative industries and ‘digital and technologies’. Our head of UK equity, Iain McCombie, has already invested in leading companies in each of these fields. In this episode, he discusses their ambitious growth plans, the importance of adaptability and why he remains confident of delivering strong long-term returns despite the trade restrictions.

Background:

Iain McCombie is a partner in Baillie Gifford, our head of UK equity and joint investment manager of the Baillie Gifford UK Growth Trust. He also jointly manages our flagship Managed Fund.

In this episode, he discusses a selection of his portfolio companies that align with the growth-driving sectors the UK government promises to prioritise in its Invest 2035 strategy. These holdings include:

the engineering company Renishaw, which specialises in measuring and manufacturing systems providing high accuracy and precision to customers including the semiconductor industry
the wargame miniatures maker Games Workshop, which is embarking on a TV and movie deal with Amazon
the self-driving car software developer Wayve, which signed a deal with Nissan to use its technology shortly after we recorded this episode
the financial services company Experian, whose vast collection of consumer debt data could become more valuable as artificial intelligence opens the door to new uses

In addition, McCombie discusses how the government’s ambitious housebuilding targets could benefit Volution Group, whose ventilation products defend against dampness and mould, and the reason why his passion for history has taught him to be an optimist.