A 10% average profit might just about be viable, but on a site where everything goes smoothly it needs to be a good bit higher than that to cover the times when it doesn't.
Replies
Risks associated with housebuilding on a brownfield site are never nugatory - supply chain difficulties, unexpected site contamination, access difficulties, house prices falls, etc
aug 29, 2025, 8:18 am • 6 0 • view
We're looking at regenerating the town centre here, & builders won't even talk to us unless we deliver a shovel ready site, with an those contamination & utilities issues taken care of by the council for them. Their 'viability' formulae don't change as a result though 🤷♀️
aug 29, 2025, 8:26 am • 1 0 • view
That's a helpful approach, and ought to be being factored in to risk appetite. But unless you're also guaranteeing them buyers at agreed prices and supplying the labour, materials and loan finance at agreed rates, there are still risks.
aug 29, 2025, 8:38 am • 2 0 • view
I mean sure, but supermarkets have risks too - bad harvests leading to supply shocks, sudden trade barriers, weather disruption, logistics breakdowns, demand fluctuations, inflation... They'll still get out of bed for 4%.
aug 29, 2025, 9:12 am • 1 0 • view
The construction industry needs a minor wakeup call is all I'm saying. We're not in a world where they get to choke off supply indefinitely anymore.
aug 29, 2025, 9:13 am • 2 0 • view