Nick Glendenning, founder of the small Suffolk-based company Nest Development, brings a unique perspective to development having transitioned into the role from a 20-year career as a TV commercial producer at the same time as moving from London to Suffolk.
His first property - the conversion of a listed chapel - sold well immediately proving his model, that well-designed spaces in a rural setting can acheive values well above the standard housebuilder offer.
Here are six takeaways from Nick’s talk
1. Current planning changes present opportunities
Nick states that planning is "really, really opening up" and it's currently "easier to get planning now than it has been for the last twenty years or so". This includes good opportunities in rural locations, with the new MPP driving a presumption in favour of planning for certain developments, such as limited infilling within groups of houses or housing within 800 to 1200 meters of a railway station.
2. Start with rural development for lower risk
Rural development generally require far less financial outlay mainly because plots are relatively cheaper than urban plots. This translates to less chance of having to put everything on the line, thereby reducing risk.
3. Never overpay for a site and create the value
His single most important point is to never overpay for a site. You must focus your efforts on finding a site at the right value by creating the value yourself, rather than buying a site where the value has already been extracted.
4. Generate opportunities using option agreements
The most effective route to obtaining a viable site is to generate your own opportunities—scour potential land, sketch out schemes, and approach the landowners to negotiate an option agreement. An option agreement diminishes risk because you only pay for the site once you have secured the desired planning permission.
5. New builds offer predictable construction risk
While conversions of existing buildings can be compelling, Nick realised that new builds are "far less risky" because the construction process is"far more predictable".
6. Good design is crucial for value uplift and funding
Good design solves problems, improves quality, adds value, and maximizes returns. The market now rewards good architecture and strong design with added value. Nick credits The Modern House with having a significant impact on the market. They were instrumental in "achieving added value for good architecture and strong design". He has marketed around twenty properties with them over the years.
