Closer symbiotic relationships between property developers and warranty firms will elevate house building levels in 2024
By Adele Reid, Managing Director at ABC+ Warranty
Earlier this month, it was recently announced that the UK is falling far short of its European counterparts when it comes to house building. This news was soon followed by the announcement that the Labour government, if elected, plans to build an astonishing 1.5 million new homes.
If developers are to achieve the levels of house building required to meet the country’s needs, and that the government is trying to plan for, they need greater cross-sector support. With this, having the right structural warranty partner can be a game-changer, and this symbiotic relationship has a huge role to play in 2024 and beyond.
There is a collective role for structural warranty and insurance providers to play in elevating the UK’s housebuilding pipeline. These warranties not only provide a safety net but can also be a catalyst for growth, enabling developers to unlock potential opportunities across the UK.
Structural warranties can be game-changers
A structural warranty is an insurance policy that covers the cost of repairing structural defects in a newly built property. It provides peace of mind to homeowners and is often a requirement for mortgage lenders. However, its value extends far beyond mere compliance.
For property developers, having the right structural warranty can be a game-changer for several reasons. Firstly, it encourages regulatory compliance. Structural warranties are frequently required by local authorities and mortgage lenders, making them a non-negotiable part of the development process. Failing to secure the appropriate warranty can lead to costly delays and setbacks.
In the unpredictable world of construction, structural warranties also act as a safety net, protecting developers from unexpected financial liabilities that could arise due to structural defects.
Investors, both domestic and foreign, are also more likely to participate in a development project if it has a robust structural warranty package. This can provide developers with the much-needed capital to fund their projects. Similarly, having a reputable structural warranty in place also enhances the marketability of a property to potential homeowners.
Successful collaboration between developers and warranty providers
For developers to make the most of structural warranties, the providers of such warranties must understand the unique challenges faced by developers and tailor their offerings accordingly. The relationship between developers and warranty providers should go beyond transactional. Instead, it should be perceived as collaboration, collective action towards a common goal. In this case, the goal is to build much-needed homes across the UK to satisfactory building standards.
Every development project is unique, with its own set of challenges and objectives. Warranty providers should work closely with developers to create bespoke packages that align with the specific needs of projects.
Warranty providers should also seek to conduct thorough risk assessments to identify potential issues and offer guidance on mitigating these risks throughout the development process, covering everything from enabling works to the end-to-end construction process.
Developers need warranties that are easily obtained and don’t hinder the development process, which is already challenging enough. Therefore, warranty providers must streamline their processes to reduce administrative burden and ensure prompt issuance of warranties. This not only supports the completion of the project but also fosters a strong sense of partnership and reduces delays in the sales process.
Greater collaboration will unlock development opportunities in 2024
Property developers play a pivotal role in addressing the housing shortage in the UK, and having the right structural warranty partner could be key to unlocking development opportunities in 2024. To facilitate this, warranty providers should offer more than just a policy; they should provide an experiential partnership.
Rather than simply offering the required warranty, providers should also share their valuable insights into emerging markets and growth areas, while also assisting with securing necessary funds and investment for large-scale developments. By collecting and analysing data on past warranty claims, providers can help developers improve their construction processes and reduce the risk of defects.
Ultimately, finding the right structural warranties is indispensable for property developers. These warranties not only safeguard against unforeseen liabilities but also enhance the marketability of properties, attract investment, and open doors to new development opportunities.
To make the most of these benefits, developers and warranty providers must work in tandem, with providers offering tailored, experiential warranty packages that cater to the unique needs of each project. This symbiotic relationship can play a significant role in addressing the housing challenges in the UK in 2024 and beyond, helping to ensure the growth of the property development sector.