Breakdown Costs
- The average cost to build a home is over £250,000. The average cost of a new build house in the UK is not far above that at £280,000. So how can developers still generate value, when they have to factor the abnormal costs that inevitably come with most sites, and the cost of land?
Source: Housing Today and Land Registry
- £133,000 is needed for basic construction of a 3-bedroom semi-detached house. Adding planning permissions, environmental regulations, and external works pushes costs much higher. These expenses mean that even where land is available, developers must find creative ways to make the numbers work.
Our Solution
- PNT Property focuses on strategic land acquisition, planning permissions, and innovative building solutions. Our team leverages market insights and years of experience to secure high-potential plots, streamline the planning process, and implement cost-effective building strategies. This allows us to deliver high-quality homes while managing costs effectively.
- In areas where house prices are weaker, developments are at risk of generating less value than their building costs. Mixed-tenure developments or forward selling to an end user can sometimes provide better market solutions, reducing cost of finance. Navigating and understanding new environmental regulations like BNG and nutrient neutrality is essential to ensure your deals stack.
- Building costs are unlikely to drop, so we need to adapt with creative planning and partnerships that can help developers and investors thrive despite these challenges. The Housing Forum report calls for government measures to help bring costs under control, but until then, developers must focus on innovation and cost management.
