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WHEN THE ISSUE LIES WITH AFFORDABILITY, HOW CAN RELEASING DEVELOPMENT LAND POTENTIALLY HELP?

As we draw to the end of 2018 and reflect on the state of the housing market over the past 12 months, it is clear to see that affordability lies at the heart of many of the problems facing the housing sector.

While an entire generation faces being priced out of the housing market, others struggle to afford to move further up the housing ladder as their property requirements change. Those who sought housing within the private rental sector, could be seeing a surge in rental costs due to increased demand especially in areas such as London.

Increasing the provision of genuinely affordable housing seems to be paramount to alleviating some of the current pressures on the market, but this can only be achieved by an increase in house building across the country. While the Government have set ambitious housing targets as a means to beat the current housing crisis, wider issues such as a lack of suitable land being released for residential development, and a shortage of skilled workers and materials are still setting house builders back.

There has been a rise in interest for modular homes in recent months, as output time is estimated to be cut from 40 weeks to just 10 days in some cases. Prices for these homes will vary, but one factory in Yorkshire is producing homes that are expected to be valued at just £65,000 - something that could be attractive to individuals currently attempting to get a foot on that all important housing ladder.

While the introduction of modular homes aims to deliver homes in greater quantity, we still need to ensure that enough suitable land sites are being identified for development in the first place. While a greater focus has been placed on the availability of brownfield land in 2018, we can’t forget the rural areas where housing is still needed but may not have the benefit of surplus brownfield land for development.

Rural areas could also benefit from the release of suitable greenfield land sites too, and this is where Intro Crowd come in. We give qualified investors the opportunity to collectively fund the purchase of strategic land sites across the country. Strategic land refers to greenfield land sites located close to existing settlements with a defined need for new homes. These sites will have good road access and can often be the next logical place for development. Due to their location, they will often have access to local amenities such as shops, schools and public transport making them sustainable - something that house builders can often look favourably on.

Once fully funded through our bespoke online platform, our experienced planning team will put these sites through the planning process and if planning consent is granted, will look to sell them on to a house builder for residential development, thus increasing the provision of development land throughout the country.

For more information on anything mentioned in this article, or to learn more about Intro Crowd and how we work, contact us today on +44 (0)20 7118 4040 or email us at incrowd@introcrowd.com

This article is for educational purposes only and does not constitute investment advice. This article does not amount to an invitation or inducement to buy or sell an investment nor does it solicit any such offer or invitation in any jurisdiction.

In all cases, readers should conduct their own investigation and analysis of the data in the article. Readers are strongly encouraged to seek independent legal and financial advice when considering an investment in strategic land. All statements of opinion and/or belief contained in this article and all views expressed and all projections, forecasts or statements relating to expectations regarding future events represent Intro Crowd’s own assessment and interpretation of information available as at the date of this article.

No responsibility or liability is accepted by Intro Crowd or Sapia Partners LLP for reliance on the contents of this article. Intro Crowd is an Appointed Representative of Sapia Partners LLP, a firm authorised and regulated by the Financial Conduct Authority (FCA).

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