If your development only works in a perfect world, it doesn’t work That’s why we build in three safety margins before starting any project Every scheme we look at gets stress-tested before we even think about offering We run the numbers against: GDV drops - what if the market takes a hit? We factor in a 10% market drop Build delays - how long can the programme slip before it’s a problem? We factor in 3, 6 and 9 month delays Build cost hikes - what happens if suppliers or contractors put their prices up? We try to anticipate this by allowing 10% Here’s a rule of thumb… If a deal survives all three then it’s a winner! If it survives two, then it’s a goer If it survives one, then we ask ourselves if it’s actually a deal If a deal can’t survive those tests, we walk away If it can, we know we’re protecting investors, lenders and ourselves What safety margins do you build in to your business?

Posted by Sam Bastow at 2025-09-17 12:16:10 UTC