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Property Development Process: Step-By-Step Guide

Find out more about development finance

Understand How Property Development Works

Fully understand the process of property development for the South-East of England

Since 2010, Hunter Finance has helped provide funds for property developments across the South-East of England. We’ve helped experienced developers to those undergoing their first property development project.

Before committing to a property development project, it’s fundamentally important that you understand the key stages throughout the development.

Understanding each process and timelines will give you a better insight into what is needed to succeed with your project.

1. Land Research and Purchase

Hunter Finance provides financial loans for property developments in the South-East of England. Find out more about our financial coverage here. We’ve helped fund property developments in popular areas such as London, West Sussex and Hampshire. When researching potential land for you to buy, you should always consider the following:

  • Is the Land Developable? Always do your own due diligence on the land you’re interested in. Consider factors such as neighbouring buildings and the area the land is in and whether development there is realistic.
  • Is the Project Profitable? You make your money when you buy, not when you sell. This can be a forgotten saying in property development, but its message is clear. Understand what you can look to sell and whether it’s a worthwhile venture to begin with.

2. Concept stage

You’ve found a potential land site; the next step is to come up with a working concept. What property do you put on the site? How many units? How big? What restrictions are there?

“It’s always important to set out a goal of what you want to build and what area you’re building in. If it’s in a London area, terraced housing or flats could maximise your money. West Sussex or Hampshire areas are more popular for detached housing.”

Bringing in an architect can help design and manage your project. They can help design the property you have envisioned and will give you a detailed plan of what is required. More.

3. Securing Planning Permission and Building Approval

Does planning permission add land value? Before you can look to build on the land, you have to have the correct planning permission and building approval from the local council. This can be time-consuming depending on the project you intend to go ahead with. Read more.

“If you build without permission, you’ll be wasting your time and money. Councils won’t hesitate to order a demolition of what’s been built and will hand you costly fines.”

How Much Value Does Planning Permission Add?

4. Pre-construction / Construction Phase

The pre-construction phase focuses on acquiring and comparing quotes from a wealth of services, from builders to electricians. Depending on your initial budgets, Hunter Finance can help provide you with a flexible bridging loan that can help get your construction phase underway. Find out more.

This can be a lengthily period of the project, but this is dependent on the size and scale of it.

It’s important to be working with people and companies that you can trust and ensure that they deliver their work on time and on budget. There is a wealth of construction companies across counties such as Essex and Hampshire, but you have to ensure the construction company you choose is right for your project.

Under the Construction (Design and Management) Regulations 2015 (CDM 2015) a construction phase plan is required for every construction project.

5. Completion and Sales

During the construction phase, it is important to begin pre-sales of the unit/s that are being built. Pre-sales can involve buyers buying the property without seeing it before completion. More.

This can help pay back the initial costs of the construction loan taken out.

Ensure you have an estate agent in place if you still have units left after completion. Each day that passes without the property being fully sold can increase debt and eat into your profits. How to choose an estate agent – Mortgages – Guides | moneyfacts.co.uk

If you’re planning a property development project in popular areas such as London, Essex or Hampshire or you have any further questions, contact us today. Hunter Finance is here to help you and provide you with the necessary funds to get your project underway.

Let’s Get Started: Land Research and Purchase

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If we can help we will say so, if we can’t we will be able to point you in the right direction or suggest alternative financial vehicles.

Property development Process Guide