Following a turbulent two years which saw multiple restrictions imposed on construction sites, workforces and lenders, the residential development market has responded with an eagerness to progress and has demonstrated how adaptable ongoing projects and developers are to changing demands, occupier needs and circumstances.
As is typical for the Bristol market, demand ultimately outstrips supply, and we have witnessed developers seeking alternative projects. Over the last six months we have valued numerous properties, particularly to the East of Bristol, where developers are taking advantage of the high private rental demand and lack of Article 4 Restrictions with regards to permitted development rights from C3 (Residential) to C4 (Houses in Multiple Occupation), by converting residential housing into high quality HMOs targeted at professional sharers.
It would be difficult not to mention the impact on the development market of build cost levels increasing some 20 to 40% on pre-pandemic figures, although overall the market has adapted to incorporate these factors into site values.
Going forward in 2022 we anticipate a lack of available or suitable projects coming to market will result in upwards pressure on values. We anticipate a greater emphasis will be imposed around sustainability, both in terms of the development project and also the way in which the developer works.
