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They get away with drip feeding because there’s no competition, because it’s really hard to get permission. A simpler planning system would allow smaller devel
by sjducb 2mo ago
They get away with drip feeding because there’s no competition, because it’s really hard to get permission.
A simpler planning system would allow smaller developers to operate and they would buy, build and sell as fast as they can.
The reason big developers drip feed is that they have 100 identical houses in the pipeline so they don’t want the price to drop at all, because it affects the price of the houses in the pipeline.
The small developer sells quickly so that the cash is available for their next project.
- jimnotgym 2mo agoSmall developers struggle to get hold of land though. You have to be in the know to get hold of building land
- sjducb 2mo agoAgreed, Thats why the planning system needs to change.
- bcjdjsndon 2mo ago> The reason big developers drip feed is that they have 100 identical houses in the pipeline So they'd expedite things to avoid risk surely? Doesn't make sense
- sjducb 2mo agoIf you dump 100 new houses onto a small town you will cause a crash. My town has a population of 15000 people, ~250 houses are sold per year and there is a development with permission to build ~400 new homes.
- bcjdjsndon 2mo ago> If you dump 100 new houses onto a small town you will cause a crash. This has never happened once... There are plenty of developments built bigger than that that do t cause a crash
- sjducb 2mo agoThat’s because big developers drip feed the houses onto the market…
- bcjdjsndon 2mo agoWhy would you begin building if prices are falling? Why would you see that it requires drip feeding because you're so close to losing money, and go ahead with the £100m+ project? Besides that, they sell plots before they're even built so why are they drip feeding in those cases? You'd be racing to get it built before materials cost rise even more