Package land sales have become a key feature within our deal pipeline over the last 18-months.
With the private housing market being somewhat stuck in the mud during the Brexit saga and recent general elections. There has been a shift in the best way to maximise consented land prices. This transition has seen the resurgence of sites being sold to Housing Associations (HAs) or Registered Providers (RPs) as they are now formally known.
“As an agency we have taken the front foot in being active in the affordable housing market.”
Ultimately RPs mission statement is to deliver affordable housing and alleviate the housing shortage across London and the UK. This is assisted through government lending and grant funding.
So, the next question people often ask is ‘how does a package deal work?’ Put simply, as agents you are not only arranging a land sale for the vendor but also a build contract for the RP which essentially de-risks them having to tender and secure a build price at a later date; a cost that can fluctuate considerably.
Our skill set was tasked with arranging a package deal for this site in South Bermondsey. A family trust was in the process of securing a consent for 74 new build apartments and wanted best value for their site for when the planning was finalised. We scoured our network and sourced a land and build (package) bid from Optivo. This included arranging a JCT with Guildmore as the appointed contractor.