Current issues in the development sector Inflation is the crucial issue facing everyone at the moment. Some products, such as bricks, have pretty much doubled in price. Sub- contractors are having to factor in uncertainty and therefore tender prices are getting a little out of control. I think this will change as the big housebuilders are now scaling back but it’s taking a while for costs to settle. The other big challenge is that the cost of sites has yet to really factor in increased build costs and the general risks that developers are taking on, such as market uncertainty with completed home sales. Development sites are still overpriced in my view, but they are also thin on the ground.
Currently we’re being squeezed from both ends. With high land values and inflated construction costs combined with a housing market in a state of flux, one has to really exercise caution. There remains very strong demand for our product but we clearly need to be making the correct decisions over the coming months. Sourcing expert advice We’re a small team and have leant on Scrutton Bland’s accountancy expertise to the extent that Ben Cussons, Associate Partner, is considered an integral part of the Nest family. He helps us with cash flow projections, valuations and regular snapshots of our financial position along with all kind of other accounting necessities including keeping us alert to any regulatory changes.
Like I mentioned earlier, it’s all about getting a strong team around you to provide the expertise required to help make the right moves.
Find out more: www.nestdevelopment.co.uk 01473 316895 nick@nestdevelopment.co.uk
6 | SCRUTTON BLAND | P R O P E R T Y A N D CONSTRUCTION
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