Manchester-based property firm Landwood has seen a marked increase in unfinished or ‘part-complete’ residential developments hitting the market, attributing the trend to ‘slow-moving’ planning reforms
UK developers are being set up for failure, warns Landwood Group’s James Ashworth. Cost spikes and labour shortages have left a lasting financial impact on the UK construction market, compounded by ‘slow-moving’ planning reforms.
In March, S&P Global’s Construction PMI reported the sharpest drop in activity since May 2020, driven by steep declines in housebuilding and engineering work.
A precarious global supply chain and US tariffs have created unsustainable economic conditions for many developers
2025 has already seen a number of high profile administrations and figures from Companies House showed that the past five years have seen almost half(48.6%) of new construction companies established collapsing.
James Ashworth, partner at Landwood Group, said: “Developers and housebuilders have been hit hard over the past 18 months, with costs rising at a pace few could have predicted.
“While material prices are starting to level out, the financial strain they’ve left behind is still being felt, especially on projects already running on tight margins.
“Adding global supply chain risks and potential new US tariffs into the mix, there’s still plenty of uncertainty for developers to navigate.
“It’s no surprise we’re seeing more part-complete sites handed to receivers and administrators, as projects stall under the weight of these pressures.”
Landwood have recently concluded the sales of part-complete developments in Liverpool, Scarborough and Grimsby. James continued: “Part-complete sites are a high-risk purchase for any buyer and in many cases are hard to secure funding on, often requiring a cash buyer.”
The warning comes as concerns grow over proposed US tariffs and scepticism mounts around the Government’s target of building 1.5m homes by the end of this Parliament.
James added: “What’s more, the planning system simply isn’t moving quickly enough to help developers deliver sites or make any real progress toward the ambitious target of building 1.5m homes.
“These ongoing delays, coupled with the backlog in local authority reviews compounded the financial pressure, creates a bottleneck that hinders developers at every stage of the process.
“When a scheme stalls, purchasers are faced with high levels of uncertainty. Picking up part-completed works is rarely straightforward, warranties often can’t be transferred. The quality and standard of previous construction is often unclear and the cost to complete is difficult to assess. Title issues can also emerge, making the sale process longer and more complex.”
Unfinished residential properties may put a spanner in government housing plans
The government is keen to make progress on their housing targets, announcing reforms set to slash delivery times of infrastructure supporting new homes by a year earlier this week, tied to the ‘Plan for Change‘.
Earlier reforms intended to reduce the burden on developers saw the reduction of the influence of statutory consultees such as Sports England and the Gardens Trust on planning approvals.
Recent estimates suggest the government will fall short of the 1.5m new homes target by a third.
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