The Unseen Hurdles in Development

Property development often conjures images of grand architectural designs and the triumphant moment of planning approval. While securing permission is a pivotal step, it's merely the visible tip of a much larger, and often more complex, iceberg.

Beneath the surface lie a myriad of "unseen hurdles" – particularly in the current economic climate – that can significantly impact project viability, timelines, and profitability if not expertly managed.

At Brentor, our extensive experience has equipped us to proactively identify, mitigate, and resolve these less obvious but equally crucial challenges, ensuring our projects stay on track and our investors' interests are robustly protected.

Economic Landscape

One of the most persistent and impactful unseen hurdles in today's market is the fluctuating economic landscape. We're operating in an environment where inflation, while easing, remains a consideration, and interest rates, though stabilising, are higher than developers have been accustomed to over the past decade. This directly impacts mortgage rates, which in turn affects the affordability for end-buyers or the viability of refinance options. A sudden uptick in rates can temper buyer demand or make exiting a project less profitable.

Our strategy involves conservative financial modelling and exploring diverse funding structures, including strategic joint ventures, to create a buffer against these market shifts.

Cost of Materials

Adding to this complexity is the volatile cost of materials. The construction industry has faced unprecedented material price inflation in recent years, with supply chain disruptions and energy costs having a ripple effect. While some material prices have seen slight decreases recently, others, like specific pipes, metals, or pre-cast concrete, continue to show significant increases. This unpredictability makes accurate budgeting a moving target.

At Brentor, we mitigate this through robust procurement strategies, early engagement with suppliers, and a meticulous approach to cost forecasting, building contingencies into our project plans.

Permitted Development Rights (PDRs)

While Permitted Development Rights (PDRs) offer streamlined routes, planning nuances still present their own set of unseen challenges. Beyond the headline approval, local authority interpretations can vary, and conditions attached to permissions might be more onerous than anticipated. Engaging with local communities, addressing potential concerns proactively, and navigating the specifics of section 106 agreements or Community Infrastructure Levy (CIL) charges require intricate local knowledge and a strong relationship with planning departments. We delve deep into these specifics, understanding that a seemingly small nuance can have a major financial or timeline implication.

At Brentor, we believe true development expertise lies in mastering these unseen hurdles.

Our comprehensive project management, meticulous due diligence that extends beyond the obvious, and proactive problem-solving approach mean we anticipate these challenges and have strategies in place to manage them effectively.

For investors, this translates to significantly reduced risk, greater financial predictability, and confidence that their project is in expert hands, navigating economic shifts and market complexities long before they become a crisis.

Get in touch today and to find out more about how you can maximise your investment with us.