The South East of England is ideal for a property developer to undertake their next project. As one of the most desirable and expensive places to buy property in the UK, there’s the potential for developers to create exceptional properties and make healthy returns. However, it’s not all that simple. The South East, especially London, also carries some of the highest property development costs in the UK.
Although it is home to rolling downland, bustling cities and desirable commuter towns, many people define the South East by its coastline. From the beaches of Kent to the white chalk cliffs of Dover, Beachy Head and the Seven Sisters, the golden sands of the Wittering beaches in West Sussex to the calm waters of The Solent, there are plenty of places that make the perfect residential property development.
So with that in mind, let’s explore what it takes to develop profitable residential properties in some of the famous coastal towns and cities of the South East, and what that might mean for securing development finance.
Finding the Location
While many seaside and coastal locations in the South East are very desirable for people from all walks of life, some will only appeal to specific demographics. Some coastal communities may have large retired populations, while others, especially those near larger cities, may be perfect for younger families looking for more for their money.
For example, Brighton is considered the second most expensive city to live and buy property in the UK. Consequently, the nearby coastal towns of Shoreham, Lancing and Worthing to the west, and Peacehaven, Newhaven, Seaford and Eastbourne to the east have experienced growing numbers of families and young people buying and renting property. The fact that these towns have direct travel links to London also makes them very desirable to young professionals.
All of these factors will impact the type of property you plan to develop, the potential return you could expect, and how easy it will be to sell. If the town or village is popular with the older generation who are looking to downsize, a smaller bungalow might be the perfect development. If you’re looking at the family market, creating a multi-bedroom house with a garden that’s close to green spaces and good schools will be much easier to sell.
Land Considerations in the South East
Another significant factor in the success of your development will be the availability of suitable land. Significant parts of the South East coastline are protected areas and nature reserves. These include The South Downs National Park, Chichester Harbour AONB, parts of the High Weald and Kent Downs National Landscapes, Dungeness National Nature Reserve, and the South Foreland Heritage Coast, among others.
Furthermore, parts of the coastline may be subject to coastal erosion and susceptible to flooding, making some land at best undesirable, and at worst unusable. As a result, this can make land in the South East, especially if it’s desirable and boasts sea views, quite expensive. Similarly, labour and construction costs tend to be higher in the South East than other areas of the UK.
Transport Links
Transport links among coastal communities in the South East can vary dramatically. Given its proximity to London, many potential buyers may be looking for routes into the capital. Larger towns and cities that have good links to London include:
- Southampton
- Portsmouth
- Bognor Regis
- Worthing
- Brighton
- Eastbourne
- Hastings
- Folkestone
- Ramsgate
- Margate
- Gillingham
However, some of the smaller towns and villages may not be so well connected. Knowing your target buyer and building accordingly will be important to ensure a successful property development project.
Know Local Regulations
Given the scale of the South East coastline, spanning four counties and multiple conservation and protected areas, it’s essential to research the planning regulations in your chosen location. Government and council websites will be able to provide more detail on specific regulations in their area, and employing local planning consultants may help overcome any hurdles. However, it’s important to remember the impact this can have on your overall budget and your ability to secure development finance.
Securing Development Finance
It’s no secret that property development finance in the South East can be expensive, and building in coastal towns can present additional challenges and considerations. However, with thorough planning and realistic expectations, the pure demand in the area can often lead to reliable returns, whether you’re renting or selling the completed project. At Hunter Finance, we’re the experts in providing residential development finance to clients across the South East. Whether you’re a first-timer and have completed plenty of projects, contact us today to find out how we can help, or apply in principle for a quick decision.
