This is the crux of the problem, developer profitability demands a shortage of housing and because developing in London (this article is Hackney) requires massive up front costs before they can sell their first units developers will happily wait until they are guaranteed a massive profit.
Make no mistake here: the developers definitely can make a profit in the current climate but that profit isn’t enough to be worth them doing it so they will wait.
We really need some initiative from the government to allow councils to take over sites that are not being progressed and allow them to borrow the money to do it.
Councils can’t make a ‘profit’ as such but every council development I’ve ever been involved in has made more money than it cost and all of these developments would be considered unviable by a developer.
This is the crux of the problem, developer profitability demands a shortage of housing and because developing in London (this article is Hackney) requires massive up front costs before they can sell their first units developers will happily wait until they are guaranteed a massive profit.
Make no mistake here: the developers definitely can make a profit in the current climate but that profit isn’t enough to be worth them doing it so they will wait.
We really need some initiative from the government to allow councils to take over sites that are not being progressed and allow them to borrow the money to do it.
Councils can’t make a ‘profit’ as such but every council development I’ve ever been involved in has made more money than it cost and all of these developments would be considered unviable by a developer.