The right development partner will make all the difference in 2023 – David Travis, Development Director at Hargreaves Land
A seemingly uncertain economic outlook, reinforced by reductions in liquidity, rising interest rates, sliding land & capital values and softening investment yields all suggest on the face of it that it’s potentially going to be a bumpy ride for the property sector in 2023; yet shoots of positive news (where you can find them!) give hope that all may not be lost quite yet.
Property and finance in general are two sectors that are highly sensitive to rhetoric; and although the cost-of-living crisis is causing unquestionable hardship throughout the country at the moment, as an industry it’s important that we don’t collectively talk ourselves into a recession before one has been formally announced.
Towards the end of last year, the Collins Dictionary reinforced that permacrisis is the “new normal”; and so, as we march head on to deal with short and long-term global crisis after crisis this year and beyond, it’s in all our interests to make sure that ‘Analysis Paralysis’ doesn’t end up as the buzz-word for 2023.
Despite all the negative statistics, UK unemployment presently continues at a low rate and there remain low levels of void across the majority of commercial and alternative property sectors; combined with a chronic under-supply of residential stock that still necessitates delivery of 300,000 new homes annually over the next 10 years – despite recent statute seemingly making this even more impossible.
So, for anyone left sitting on potential development opportunities or unrealised strategic land, the early stages of 2023 could be a timely one to act. History has often shown that fortune favours the brave and ultimately ‘The Regeneration Game’ has always been a long-one to play.
Whilst the weight of institutional money pouring into UK property has largely led to market distortion over previous years, the current fiscal climate and impact that build costs have had to the viability of numerous development projects brings into focus other ways of doing things. In our experience, collaboration has always been key to long-term success and there are often many ways to accomplish the same end.
As part of a large multinational Plc, Hargreaves Land is well placed to provide expertise and stability for those looking to bring forward development throughout 2023 and beyond; on the back of our Group’s c. £20 million of cash reserves, strong balance sheet and limited operational debt.
Our track record as a trusted, sustainable development and regeneration partner means that we are at the forefront of tackling both the sustainability and biodiversity agendas, with high-levels of corporate governance in place to ensure long-term success for private landowners and public-sector institutions.
We have a growing portfolio of successful projects in Wales, Scotland and across England. A prime example is Unity, our joint venture development in partnership with Waystone on 650 acres in South Yorkshire, one of the largest regeneration projects of its type in the UK.
In Scotland we are actively regenerating a former coalmine, transforming the Blindwells site in East Lothian as master developer to provide ambitious and sustainable solutions to create a thriving community where people can feel proud to live.
Elsewhere, we have recently completed a development partnership with Fintry Estates and East Riding of Yorkshire Council to deliver a new edge-of-centre retail warehouse scheme – a move that has significantly enhanced Bridlington town centre’s offer, created new jobs, and boosted the local economy.
From retail to offices, industrial and logistics to residential; we work across all property sectors and our flexibility and resources enable us to structure deals to suit the specific needs of our development partners.
Contact us this January and let’s have a discussion to see how we can work together to realise the potential of your development opportunity in 2023.