What size company do you need to be to develop property in London profitably and without significant risk?
Having spent the last few years dealing with the planning system, architects, surveyors, structural engineers, building contractors, etc, I have been exposed to the enormous cost of the system and its multiple points of failure.
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My general feeling is that you will need to be very large to be in this game, and that restrictions around "affordable housing" probably lower the profit margin further, making it even more necessary to be large and able to handle multiple projects in parallel, etc.
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Protracted planning processes and highly regulated expectations can mean requiring property developers to keep paying for more and more design work until the whole financial viability of a project needs to be questioned!
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I just checked and building contractors apparently have significant issues, while home builders are a little better off yet are fragile to changes in costs... (I haven't heard this discussed by
@londonyimby before but viability of property investment seems very relevant.)pic.twitter.com/cXJm0GlMgm
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A profit motive for building seems to me *absolutely essential*!
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