How do registered providers turn existing stock (garage sites) into development opportunities

In the current climate many RPs are finding themselves shut out of development opportunities on certain sites due in large part to over inflated offers at the bidding stage from private developers. But as adding to their housing asset base and creating a steady stream of future rental income is the key to their own futures, RPs are being forced to be creative and find other ways of generating more units. Rather than looking externally, some RPs are now reviewing their own books and their existing stock for residential development opportunities. 

What opportunities are available? 

With the rising costs of both land and build, assessing existing stock could prove valuable for many RPs to ensure they are able to continue providing social housing. Step forward former garage sites – which now sit vacant and void and are potential sitting goldmines for RPs. Many of these garage sites are currently bringing in little to no rental income per year and assessing their development prospects could prove to be an excellent option to achieve additional housing and income.

 How can these sites be assessed?

 An initial health check will flag at an early stage whether or not a garage site is viable for development purposes and should include:

• Title issues such as restrictive covenants i.e preventing a change in use;
• Any 3^rd party rights over the site;
• Charges registered against the title;
• Compliance with housing restrictions;
• Services and apparatus;
• Boundary; and
• Full suite of searches.

There may be some resulting issues which hinder development proposals from getting started but addressing any issues early on will prove invaluable. Once addressed RPs can then move onto considering their options i.e whether releases are obtained, indemnity insurance where possible or disposal of the garage site (with or without a planning permission).

Next steps

Securing potential developments sites is key to prevent fly tipping, squatters and third party rights being exercised and then contact a member of the social housing team who can assist with bringing your site to market.