A Balanced Financial Foundation
NEW URBAN LIVING delivers high growth, superior returns and low risk by taking the speculation out of development.
Our innovative business model increases the supply of residential completions, helps funders and Local Councils meet their goals with confidence, and commands a premium.
How do we do it?
We work with Local Councils who have explicit and specific policies for meeting the housing needs of older people, and who face challenges to deliver sufficient housing for this age group over the next decade.
Local Councils are being urged by Central Government to release their own land to help deliver housing targets. NEW URBAN LIVING provides housing that delivers the broader societal benefits that Local Councils want and which their communities are looking for, which makes for a great partnership.
Conventional housebuilders deliberately constrain supply to prevent too many homes coming to market at the same time to keep prices (and their profits) high. Consequently, on average, 45% of approved planning applications lapse. This wastes Planning Officers’ time and hobbles Local Councils’ ability to deliver the housing completions Central Government and their communities require.
NEW URBAN LIVING’s Personalised Homes™ enable homebuyers to specify a wide range of features of their new home before we build it. So each home is unique and sold pre-build, which removes the problem of a glut of homogenous commodity housing coming to market at the same time. This means we make full use of the Planning Approvals that we receive.
Conventional housebuilders deliberately constrain supply to manage their risk. The possibility of an economic downturn or other shock to the market over the timescale of development of a site makes this degree of caution prudent. NEW URBAN LIVING’s Personalised Homes™ are built to order, primarily for the target demographic of 55+ owner occupiers with no mortgage. Consequently, our properties are sold before they are built, materially reducing financial risk for our developments.
Additionally, buyers have the choice to pay in excess of the deposit (up to the full purchase price) in return for a sliding-scale discount on the normal asking price. This reduces our dependence on external funders, giving our business more certainty and enhanced capability to scale rapidly, while further lowering our finance costs.
The availability of skilled construction professionals affects all conventional developers, and shortages are a constraint on the ability of the UK to meet its housing needs. A proportion of this workforce are nationals of other EU countries, so additional uncertainty exists regarding supply in the coming years.
NEW URBAN LIVING’s Personalised Homes™ make full use of computerised Building Information Model technology and are built using Modern Methods of Construction, dramatically reducing our requirement for skilled and non-skilled labour while reducing build times, increasing certainty and delivering superior build quality.