James Ashworth, partner and head of Landwood Property Auction and Agency team at Landwood Group, shares his expert advice.
At Landwood Group, we are seeing a surge in part-complete developments entering the market, as developers across the UK struggle with ongoing cashflow challenges, labour shortages and planning delays.
The combination of lingering cost pressures and a slow-moving planning system is forcing many construction projects to stall and, increasingly, fall into receivership.
These are some of the most complex disposals in the sector. They carry higher risk, demand greater due diligence and often appeal only to a very specific buyer pool.
This is why experience matters to ensure these types of listings are connected with the right buyers.
James Ashworth, partner at Landwood Group, explains:
Why are we seeing more part-complete developments
Developers and housebuilders have been hit hard over the past 18 months, with costs rising at a pace few could have predicted.
While material prices are starting to level out, the financial strain they’ve left behind is still being felt, especially on projects already running on tight margins.
Adding global supply chain risks and potential new US tariffs into the mix, there’s still plenty of uncertainty for developers to navigate.
It’s no surprise we’re seeing more part-complete sites handed to receivers and administrators, as projects stall under the weight of these pressures.
The risks and opportunities of part-complete developments
Buying part-complete developments presents significant risks.
Uncertainty over build quality, the need for additional investment to finish the project and difficulties securing financing can make these properties a tough sell.
Most buyers for these types of sites are cash buyers who can take on these challenges.
However, despite these risks, part-complete developments offer opportunities for buyers who are willing to navigate the complexities.
At Landwood Group, we’ve successfully marketed and sold several high-risk properties, including:
- A 208-unit student accommodation development in Liverpool
- A Grade II listed building in Scarborough, with consent for 50 homes and co-working space
- A 4.6-acre site in Grimsby with planning permission for 13 houses
Each of these projects had its own set of complications, missing warranties, legacy title issues, access problems and build quality concerns. However, with a hands on approach and partner-led expertise behind each listing we were able to connect these properties with the right buyers and deliver strong results.
The impact of the planning bottleneck
A critical issue driving the rise in part-complete developments is the slowdown in the planning system.
Despite the government’s target of delivering 1.5 million new homes by the end of the current Parliament, developers are still facing significant delays in securing planning permission.
Local authority backlogs are adding to these pressures, creating further obstacles for developers trying to move projects forward.
The delays in the planning system, along with the local authority backlogs, are putting even more strain on developers.
When a project stalls, it’s difficult for purchasers to assess the quality of the work completed, transfer warranties, or secure financing. This creates a high level of uncertainty, making the sale process much more complex.
Why expertise matters
Navigating the sale of part-complete developments requires careful planning and extensive sector expertise.
The risks involved make these properties challenging to market and sell, but with the right approach, they can yield positive returns.
Our experience in dealing with complex insolvency sales has positioned us to successfully manage these transactions and connect developers with serious buyers.
Part-complete sites require careful handling and cash buyers are often the only contenders.
This is where our experience makes all the difference. We’ve built a strong reputation for selling complex listings and delivering the best possible outcomes for our clients.
Need support with the sale of your part-completed site?
If you’re facing insolvency challenges with part-complete developments or need to sell, our team at Landwood Group is here to help.
We offer tailored advice and a full range of recovery, restructuring and exit strategies across private treaty and auctions. We can expertly guide you through the process.
Contact us:
Helen Jude
Partner
P 0161 710 2010
E helen.jude@landwoodgroup.com
James Ashworth
Partner
P 0161 710 2010E james.ashworth@landwoodgroup.com
