This year has been a tough one. Outside of the usual social media bluster which may suggest otherwise – from the I love coming back from holiday to get back into the office to the ice baths at 5am brigade – most developers, investors and lenders would agree!
The planning system is in a mess – but when you have experienced planning officers who understand policy and make recommendations to what often is the butcher, baker and candlestick maker – what do you expect?
Sadly, nothing is going to change until we dispense with a process where impartial decision making is frustrated by political self-interest, inexperience, and NIMBYism.
At all steps, developers are having their hands tied behind their backs – from Biodiversity Net Gain (BNG), the Community Infrastructure Levy (CIL)/affordable housing requirements, rising build costs and Gateway 2 delays – and it hurts even more when all this means an up fronted loaded cost investment.
So enter Rachel Reeves! Yes there is a problem and yes it needs fixing, but a strategy of keep coming back to the trough and feeding on repeated tax raids on business and property has created a depression before she has even got to the despatch box.
As an investor said to me this week – “Why the hell would I invest until I know how bad November 26th will be – will that valuation still be fit for purpose? Why would you complete on a site before the budget?”
But ignoring all the above, we need to Build Baby Build. Perhaps the 12th Housing Minister since 2010 can succeed where others have failed!
Let’s wait and see what the chancellor can pull out of the hat to give confidence on both supply and buy sides.
Funders are equally frustrated. The will to lend is there but pipelines are not converting as schemes get delayed, stall or become unviable due to cost increases (including hold/finance costs due to planning delays or increased equity calls).
Lender relationships can become challenged or frayed. Information flow becomes critical alongside a deep knowledge of funder appetite and process.
Step in the advisor who has the experience to look at innovative structures and problem solve to keep schemes at the table – not for the faint hearted or indeed for the butcher baker or candlestick maker…..let them stick to the sausages!!
Cowgills Funding provides bespoke, independent and impartial advice across a range of property finance requirements from acquisition, refinancing, investment and development solutions.
Get in touch at enquiries@cowgills.co.uk
