Proposal To Assist Property Development On Brownfield Sites
It is no secret that the UK has a shortage of housing for people to reside in. So, anything that can be done to increase housing stock must surely be welcomed by the likes of house hunters, property developers, building firms and lenders who provide development finance.
You will be interested to hear that the Government is considering introducing a system whereby planning permission would be given automatically on certain brownfield sites within a “zonal” system to build homes. A brownfield site is one that has previously been used for commercial/industrial purposes but may now be derelict.
There are many such sites in this country so the above proposal could help increase the number of homes being built. It could also help reduce the pressure to allocate green belt land for housing development purposes.
This announcement is rather timely when you consider that in May 2015 the number of new homes being built dropped by 5.8%. The previous month, there was a rise of 5.3% so the drop is concerning.
In addition, the Government would like to allow owners of residential properties in London to be able to add an extra storey to their homes to the same height of neighbouring properties without having to apply for planning permission. This should encourage more London residents to extend their homes thus creating extra work for the building industry.
If these proposals are approved, it will no doubt result in more builders and property developers requiring development finance to assist with the funding of an increasing number of projects. In this respect, we are well placed to offer assistance in sourcing competitive development loans for clients as we have an extensive panel of well-known lenders. So, why not contact us and we can put you in touch with a specialist in this area of finance to discuss your requirements.