PERMITTED DEVELOPMENT RIGHTS | REACTION FROM FUNDERS
Permitted development (PD) rights have given some developers a new potential source of residential development deals. In the London market many were finding it very difficult to compete on sites with full planning consent and whilst PD hasn’t exactly opened the floodgates for new projects, it has given many new avenues to explore. Developers were typically already looking at commercial to resi conversions but the funding of such schemes was certainly challenging in light of the potential planning risk.....
RETURN OF THE BANKS
Bank funding for property development projects, in particular from the large high street names, has been a hotly contested topic in recent months. At a conference on residential development finance in July one attendee asked a banking panel when the high street banks would be lending on development projects again – a representative of a high street bank replied that they never stopped their development lending activity!
I think the truth of the matter is probably somewhere in the middle......
FILTERING THE NOISE | DOXASTIC COMMITMENT AND THE RELIABILITY OF MARKET FORECASTS
With the property market in the UK, and particularly in London, seeming to be making a strong recovery there are many projections and opinions being published ranging from the old ‘can’t go wrong with bricks and mortar’ to doom-mongers who feel we are already in a housing market bubble again and the inevitable bursting is on the horizon. Both sides can put forward compelling evidence as well as supposedly supporting data and there are established industry names firmly in one camp or the other....
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