1. Challenges to Delivering Growth The Developers Perspective West of England Growth and Delivery Event 13 October Ralph Hawkins, Development Director, Barratt Homes

2. Introduction The Symptoms The Cause The Cure
Maintaining delivery of housing and other development in the current market downturn and into a future market recovery cycle is a challenge for the development industry, local authorities and other public bodies.
Using a medical analogy I am going to explore:
The scale and nature of the challenge - what is actually happening on the ground in these difficult times (‘The Symptoms’)
Examine the key issues or ‘Causes’
And potential solutions ‘The Cure’

3. The Symptoms Stalled schemes Market uncertainty Falling investment
Business shrinkage
A symptom of the current downturn is that a number of development proposals have either stalled in the planning process or are not being implemented.
One of the most significant challenges in seeking to recover from the recession is the general lack of confidence in the market place
During these difficult times developers are scaling back on their investment portfolios and concentrating on limited opportunities to make existing schemes viable
Less ‘major’ planning applications submitted
Reduced scale of operations and resources, including staff

4. The Causes Mortgages Project Finance Land values Increased costs
Reduced values
Reduced availability of mortgages to potential purchasers and lack of confidence in the housing market affecting both the overall scale of demand, and the product on offer
The reduction or withdrawal of project finance and more ‘risk averse’ investor attitude
Reduced land values including sites acquired / optioned in more buoyant times
Difficult landowners
Reduced end sale / rental values that can mean that the costs associated with bringing forward development are in some cases now higher than the end values

5. The Cure Partnership working Greater certainty and consistency
This brings increased confidence and trust
Now, more so than ever, a collaborative approach between developers and local authorities is important in trying to overcome the barriers behind stalled development schemes.
A key message from the development industry is that in order for us to have greater confidence to invest in this area we need a ‘level’ playing field’
Avoid perverse decisions