The housebuilding Industry will always have its challenges, but one overriding benefit to housebuilders is the half century imbalance of supply failing to meet demand, a unique advantage few other sectors benefit from.
The Government has used many levers to get things moving as we know well and as such the Industry is on track to deliver one million homes by 2020.
There remains a quiet building revolution, more recently trumpeted as EPC records confirm 211,000 new homes were completed in the year to June 2017, up nearly 50% in three years.
Help to buy remains the stuff of dreams for many National Housebuilders, amply rewarded in the last budget with another £10bn and major support in SDLT changes.
Forward indications bode well, even with an indebted and over borrowed consumer, struggling with regulatory and lender red tape headwinds.
Across many parts of the country, new housing is almost meeting demand, especially where housing affordability is better than average, but in the South East, a significant increase in supply is needed to ease affordability pressures.
Land to GDV ratios in the South East are still very toppy, compounded by unique constraints of environment and landscape destinations, this imbalance is unlikely to change anytime soon. It is estimated there was a shortfall last year of 104,000 homes where demand was highest, but affordability was stretched and the vast majority of this was the South East.
For more than 40% of households to be able to afford and buy a home in the South East, there would need to be substantial stock availability at a maximum price of £250,000 and this is unlikely to happen.
Those in Government know well that if they are to be re-elected then the electorate needs to be garnered and the best possible way to do this is to get many of this electorate on the housing ladder.
We still need a new catalyst if we are to build the 300,000 homes per year that are required in England alone to ease affordability pressures for home buyers and there remains a near oligopoly of just six (yes really) controlling nearly 60% of all new built homes that come to the market.
So it’s all about supporting the independent Housebuilder, hit hard by limited finance, inflation and skills shortages to ensure we have a positive and diversified supply base…Welcome to Go Develop.
Go Develop provides 100% full development funding covering everything from land and build to stamp duty and soft costs – no fees or deductions. Developers have absolutely no outlay – not a penny, and there are no set spreadsheets or ‘computer says’ mentality. Instead, a joint venture partnership is set up ensuring the developer takes home the lion’s share of the profits once the project is completed and sold.
With decades of experience in property, the Go Develop team offer expertise in legals, surveying, marketing and accounting and will happily burn the midnight oil so that the developer doesn’t have to. The criteria is kept simple, with a focus on experienced new build developers, preferably with planning in place and a target GDV of £2-15m. There needs to be a margin of 25% on GDV pre-finance and projects tend to be no longer than 2 years with competitive selling prices for the postcode. With over 1,000 units being built nationwide, Go Develop are offering an innovative solution for housebuilders and developers in needs of funding.
It’s so important to the Country that independent Housebuilders are given the funding and opportunity to shine and contribute, creating style and substance and offer the house buyer the opposite of the big six players, who revel in scale and synergies across mass estate housing and where Magnolia is the colour of choice.
Go Develop embrace the diversity of its many JV partners and with over 92% returning, our reputation is our currency….
“Working with Go Develop has been a fantastic experience. Not only have they provided tailor made funding but they have helped with risk analysis, due diligence, financial planning, marketing – the list goes on. In some ways this has been even more valuable, and we can take this knowledge on to our future projects.” B. Mccouid, Developer
“When I first met Go Develop I couldn’t believe what you were offering… hang on there must be a catch I thought…. are you saying I can find a site on a subject to planning basis, secure the planning, introduce it to you and you will pay me for the margin I have made straight away in the planning gain uplift. You know with Go Develop that you’re in safe hands and they’re straight and easy to do business with – that’s worth a lot! An awful lot!” S. Laign, Developer
“They simply do what they say, funds are swift, there is no fuss or complexity and they want us to succeed. I am on my third project and look forward to many more.” S. Wright, Developer
Find out what Go Develop partners have to say and case studies of recent projects on here