It’s been the productive busy, not the kind where you’re flat out and then go: “What have I achieved?” 

Every single person I know that was doing dry January failed. One person, in fact, failed at day six, so I’m not sure why he even bothered. I, on the other hand, did not even consider it as I knew it was unrealistic. I’m sure all the gym memberships that people signed up to on 2nd January are not being used as much as they were. The intention is there, but again, it’s unrealistic and can be costly.

The same principles can be applied to development. Being unrealistic with costs, finance, the market etc, can have a detrimental impact on the overall build. I was at an event recently where development was one of the key topics. One of the surveyors at the event stated that since the start of the year, over 70% of all new enquiries was a new development. 

With changes to regulation and planning – coupled with the housing shortage we have in the UK – I think this is only healthy for the development market. But, unrealistic targets and understanding of what you’re doing can be your downfall.

With rates still at all-time low levels, borrowing is still a very tempting prospect. With more and more lenders entering the development market, it can be a minefield for a property developer to know where to go. Education is key. Experienced developers work with specialist brokers, such as Finance 4 Business, as they’re guided from start to finish. By evaluating the whole project, we’re able to select the right finance package, solicitors and even surveyors if required. This ensures the whole build is done correctly, in the shortest time possible.

So, what about the new developer? Where do they start? Financial advisers and/or accountants of their clients should be educated enough to place them with a specialist broker. We’re getting the message out there and many understand the logic of utilising a firm such as ourselves. We’re seeing an increase in joint ventures between new developers and the lender. 100% loan-to-cost options are available, something that would have been unthinkable only a few years ago.

Listening to lenders, solicitors, surveyors and other brokers, the market is buoyant and that’s a great thing. Uncertainty is always going to be a word that is bandied about, but working with a leading broker will find a solution to overcome the uncertainty. Working backwards – knowing the exit strategy first – is key. If the development is to be sold on, we need to look at the figures at the outset. If they’re to remain and be let out, we can look at the exit on to a term-based deal as the build comes along. 

This is all part of the education process. This market is ever changing and we must pass this on to both novice and experienced developers.