In spite of an undoubtedly challenging residential market, freehold sites with full planning permission for residential development continue to prove popular. Help to Buy is clearly a key driver, with first time buyers understandably attracted to new homes, and developers competing for the opportunity to build qualifying product as a result.
Residential values closer to Central London have increased considerably over the last 5 years, and in order to buy (or build) new homes under the £600,000 threshold interest has refocused on the outer London Boroughs, including Croydon.
We sold an 8 unit site in Dennett Road at a strong premium in the first quarter of 2018, and followed that with the sale of a 9 unit site in Holmesdale Road in the second quarter.
This particular sale was made on behalf of a developer client that hadn't completed its purchase; proving that opportunities do still exist to add value without necessarily taking full ownership. Trading the contract in this case was key given the penal SDLT rates levied on the sale of residential properties acquired by professional buyers.
Whilst the market for sites isn't as strong as it was 24 months ago, in-depth market knowledge and the comparable evidence generated by one of the largest new homes agencies in London leaves us perfectly placed to drive premium prices from sites with planning permission.
PROJECT ADDRESS: 393 Holmesdale Road, South Norwood, London SE25 6PN
CLIENT: Sterling Rose Development
PROJECT VALUE: £1,225,000