Investing in residential property can be a highly profitable venture, but as in anything there are risks. Property developers need to develop an investment strategy before buying property.
We can advise you on projects throughout the development life-cycle, from planning to sale, and our team combines the expertise of decades of practical hands-on experience of the property market in South East London and the knowledge of knowing the right approach to take. See our sourcing approach for more information.
Each client and project is unique, and various factors such as risk profile, capital expenditure and time-scale shape the strategy of any project.
Our services include advice on:
- Options analysis
- Property conversions
- Splitting units
- Specification and finish
- Sales approach
For developers looking to sell or rent the finished property or properties, thorough research of local market demand will help determine whether the plans meet the needs of the area. This research will indicate, for example, whether building several small flats or one large family home is the more viable option, or if more young families are moving to the area, then simply adding an extra room to a one bedroom house could add more value to the property.
The conversion of a property may add to its value and increase its rental yield. The type of property conversion you decide on will depend on your budget and planning permission. It is important to choose the right property to convert, the right type of conversion, and to ensure that the work is compliant with building regulations and planning rules.
This takes an existing building and splits it into smaller units, e.g. from a large house into smaller apartments, or from a one to a two bedroom property. Splitting larger properties into smaller flats or apartments can be a costly process, but if the conversion is well-managed and meets the area’s demands, it can increase the return on investment. The process might require an architect, and could have an effect on council tax, utilities, fire safety, sound insulation, VAT, insurance and tenure among others.
Specification and finish
The specification and finish of the development should also suit the needs of the local market. Whether a high-spec finish or more simple fittings are chosen, they will need to be fit-for-purpose and conform to building and safety regulations. While building regulations will influence many aspects of the work, there may be extra criteria to fulfil depending on the type of development. For example, Houses in Multiple Occupation (HMOs) require fire doors where there are cooking facilities.
When it comes to marketing the development, typical options include brochures, portals such as Rightmove and Zoopla, and local estate agents. If the plan is to sell all or part of the development off-plan, artists’ impressions and floorplans are often used to show prospective buyers how the finished development will look. The pricing of the development or individual units should be forecast as part of the feasibility study, but researching the local property market and using property portals when the project is near completion will identify any market fluctuations which have occurred in the interim.
With over 60 years’ combined experience in the London property market we can provide expert advice and guidance to new developers. Contact us to see how we can help.