Posted September 29, 2021

Why contingency planning shouldn’t be underestimated by investors and developers


After a turbulent last eighteen months or so, it feels as though we’ve finally reached a turning point with the economy fully open for business again. Investor and developer activity are set to increase, with no shortage of opportunities – from brownfield sites to re-development of existing buildings.

Below, our CEO Dave Pinnington offers commentary on key considerations for property developers and investors in today’s market.

Factors to consider in today’s market

Due to the numerous factors affecting the property development process, it is important to consider the external factors that could affect your project before taking out a loan.

The impact of a backlog across professional services

Many solicitors, lenders and valuers are subject to working from home, causing development processes to become less efficient due to slower access of company systems. This then leads to an elongated purchasing process and causes delays that could affect profits.

With the backlog of planning applications, with council operatives also subject to remote working, there has also been further effects for developers seeking to complete a project within a specific timeframe.

Extreme shortage of material supplies needed for development sites

There are currently major supply issues affecting the construction industry. This includes a lack of essential materials such as cement, timber, steel and electrical components. These supply issues are causing a domino effect on the industry, as delays affect the price of materials, availability and lead times, which can influence a project’s profitability.

Investors and developers should seriously consider these factors for contingency planning – overlooking this is a dangerous approach. Similarly, it is wise for investors and developers to have the right kind of specialist insurance in place to help provide cover in these cases. This will reduce any headaches later on.

The journey ahead, while open, by no means will be smooth sailing. However, with the correct planning and the right advice for your venture, there is no reason why investors and developers should shy away from the multiple opportunities that are currently on offer.

How can Finance 4 Business help?

If you’re looking to begin a property development project and need help with creating a contingency plan, we can help. As an award-winning finance brokerage, we will assist to highlight issues you might encounter because of external factors, and plan around them.

To find out more, call our very experienced specialist team on 0121 309 0444 or email