How to Find a Good Property Development How to Find a Good Property Development

How to Identify a Good Property Development Company

Investing in real estate is one of the best ways to grow your finances, meet certain financial goals, and build an attractive portfolio. By purchasing property in the right areas, and with the highest potential returns, you have a much stronger likelihood of investment success. This is why it’s always important to do your research before embarking on a property venture. That means researching your target market, researching potential rental yield figures and rental incomes, looking at long and short-term capital growth, and taking all the necessary steps to succeed. When looking at the area of the property and researching its investment prospects, however, it’s also crucial not to ignore the property development company behind the investment opportunity.

When purchasing an investment property, particularly an off-plan development, there will be a property development company behind each project. Knowing who the different property development companies are and whether they’re considered reputable UK property developers is always recommended as part of the due diligence process.

In this guide to property development research, we will cover some of the most essential steps when identifying a good property development company, and answer any common questions about property development companies in general. If you’re thinking of becoming a property investor and want to make sure you’re making the right choice, or you’re considering becoming a property developer yourself and need some further insight, keep reading for our top tips on finding the best property development companies in the UK.

 

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What Is a Property Development Company?

A Property development company is a company that specialises in developing new properties. UK property developers will either be involved with buying land and getting planning permission to build a completely new development, or purchasing an existing building and renovating it for a refurbishment project. The property development company will then either sell the property/properties themselves, or collaborate with a company who can sell on their behalf.

When it comes to buying an investment property, UK property developers will normally work with property investment companies that will sell units within their upcoming development. Since many UK areas are experiencing high demand for properties, particularly in the city centre, the country’s top property development companies are working hard to bring exciting new developments to cities across the UK. In major cities like Liverpool, Manchester, and London, the top property development companies in the UK are often introducing impressive new developments which add to the vibrant cityscape and offer new solutions to the buyer or renter markets.

An individual can still be classed as a property developer even if they’re not part of a company. Property development and investment are two strategies that are often combined. In the case of those interested in getting into property development, this would usually involve purchasing a property such as a house and renovating it before renting it out or selling it for a higher profit. For many investors, however, the added costs involved with property development financing, paired with the time that needs to be spent managing the renovation of the property, mean that typical buy to let investment is often the more popular choice.

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How Do Property Developers Make Money?

Whether developing residential property, a commercial property, or a mixed-use project, property developers all make money in the same ways. In order for a property development company to make money, they need to sell units within their development projects. As mentioned above, this will often be a joint venture between property development companies and property investment companies. Both owning a property development company and investing in a property sold by a developer can come with a lot of profitability. That’s why making sure to select the top property development companies to invest with is such an important step for every property investor to take.

 

Why Is Due Diligence Important When Finding a Property Development Company?

As part of the due diligence process, it’s essential to do thorough research to find out whether a company is worthwhile working with. This applies to both the property company that is selling the investment and the property development company behind the project.

So why should real estate development due diligence be such an important part of your investment journey? Here are three reasons to undertake due diligence if you want to identify the best property development companies to work with.

 

1. Researching Property Development Companies Gives You Peace of Mind

By researching property development companies beforehand, you’ll have better peace of mind that your investment will complete successfully and to a high standard, ensuring you maintain strong rental returns and a high cash flow.

 

2. You’ll Learn More About the Property Development Company Industry

If you’re new to the property world and investing in real estate, researching the different UK property developers out there is a good way to learn more about the property market overall and be able to recognise industry-leaders. For instance, once you know who the top 10 property development companies in the UK are, you’ll have a better idea of who to work with and who to avoid. In this sense, due diligence can be a lot like market research.

 

3. By Investigating Different Property Development Companies, You’ll Improve Your Research Skills

Due diligence is such a necessary skill for many areas of life, so by taking the time to use it when researching the top property developers, UK investors can become more familiar with the due diligence process and build on their research skills.

Overall, by carrying out property development due diligence, you can rest assured that the property development companies you’re considering are experienced, reliable, and prepared to offer the best possible investment properties on the market.

Finding the Top Property Development Companies: Five Steps to Take

Doing company research is always an important part of due diligence, especially when it involves such a large purchase as a property. Researching the company is the only way you can find out about the top property development companies on the maket. There are a range of things you should look out for when researching different real estate development businesses.

The first step should be for the property investor to find out how long the company has been around for. If a property development company has been operating for many years, it’s likely that they will be more established and successful than those who are just starting out. Experience means a lot, and if the residential property development companies you’re researching have only recently launched and haven’t yet successfully completed any projects, you may feel less secure in making a purchase. Take this time to also learn a little bit about the team behind the property development company, finding out who the managing director/directors are, and learning about their industry background.

You should look for any evidence of company growth for the property development company you’re investigating, whether this means they’ve won awards or expanded their business in some way. If a company is always looking for new ways to excel, this can be a good sign that they’re committed and will continue to develop over time. Similarly, if the developer is constructing exciting new developments in thriving UK cities such as Liverpool and Manchester, and not only focusing on London for new developments, this shows that they have good industry knowledge and are forward-thinking.

Reviews are such a crucial element of any purchase. Buyers will check customer reviews for pretty much every product they purchase, and a property shouldn’t be any different. When researching a property development company, check their website for any company reviews, or refer to review sites like Trustpilot, Feefo and Google Reviews.

Some of the top property development companies in the UK will have built up a number of customer reviews. To identify a strong company, keep an eye out for 4 or 5-star reviews which paint the company and the developments they create in a good light. Qualities like strong customer service and high-quality properties are things you should look out for when reading online reviews.

If a property development company doesn’t have any evidence of completed projects, then it can be difficult to identify whether they’re reliable or not. The top property development companies in the UK will likely have a portfolio of successfully completed sites that potential investors are able to browse.

When researching a company’s track record, you should pay attention to not only the finished development and how it looks, but consider whether or not the project completed on time and to budget. Delays in a property’s construction are sometimes unavoidable, so if there were any delays, try and find out the reason for this.

When it comes to property development companies, UK investors should also be sure to spend time looking online for any news or press which mentions the company. If a property development company’s latest developments have made the headlines for all the right reasons, this is evidence of their strong track record and solid reputation in the industry.

If a company has a lack of news or press coverage online, this isn’t necessarily a sign that they can’t be trusted. Some property development companies who have been around for less time may have simply not yet had news outlets cover their developments. However, if the company has been around for a long time and you can’t find any press coverage about them, or if you find more negative news stories, you should be cautious before going ahead with an investment.

When considering a property investment, residential property development companies are not typically the company you would purchase the property from. Property development companies will usually work in collaboration with property investment companies who will sell the properties on their behalf. This is why researching the property investment company along with the development company is a useful step to identifying the strength of a property developer.

Property investment companies that are well established are unlikely to work with bad property developers. The majority of these companies will research the developers they work with in-depth, and would be sure to avoid any companies they suspected were unreliable. At RWinvest, for instance, we only work with industry-leading property development companies in the UK, offering our clients the best possible developments in the top-performing locations. When researching property investment companies that work with the developer, take all the same steps that you would when researching the development company. This includes learning about how long they’ve been operating for, reading customer reviews, checking for news coverage, and looking at their track record. If the property investment company looks reliable, experienced, and trustworthy, it’s likely that the property development company that they work with will be too.

1. Do Your Company Research

Doing company research is always an important part of due diligence, especially when it involves such a large purchase as a property. Researching the company is the only way you can find out about the top property development companies on the maket. There are a range of things you should look out for when researching different real estate development businesses.

The first step should be for the property investor to find out how long the company has been around for. If a property development company has been operating for many years, it’s likely that they will be more established and successful than those who are just starting out. Experience means a lot, and if the residential property development companies you’re researching have only recently launched and haven’t yet successfully completed any projects, you may feel less secure in making a purchase. Take this time to also learn a little bit about the team behind the property development company, finding out who the managing director/directors are, and learning about their industry background.

You should look for any evidence of company growth for the property development company you’re investigating, whether this means they’ve won awards or expanded their business in some way. If a company is always looking for new ways to excel, this can be a good sign that they’re committed and will continue to develop over time. Similarly, if the developer is constructing exciting new developments in thriving UK cities such as Liverpool and Manchester, and not only focusing on London for new developments, this shows that they have good industry knowledge and are forward-thinking.

2. Look for Strong Reviews

Reviews are such a crucial element of any purchase. Buyers will check customer reviews for pretty much every product they purchase, and a property shouldn’t be any different. When researching a property development company, check their website for any company reviews, or refer to review sites like Trustpilot, Feefo and Google Reviews.

Some of the top property development companies in the UK will have built up a number of customer reviews. To identify a strong company, keep an eye out for 4 or 5-star reviews which paint the company and the developments they create in a good light. Qualities like strong customer service and high-quality properties are things you should look out for when reading online reviews.

3. Look for a Proven Track Record

If a property development company doesn’t have any evidence of completed projects, then it can be difficult to identify whether they’re reliable or not. The top property development companies in the UK will likely have a portfolio of successfully completed sites that potential investors are able to browse.

When researching a company’s track record, you should pay attention to not only the finished development and how it looks, but consider whether or not the project completed on time and to budget. Delays in a property’s construction are sometimes unavoidable, so if there were any delays, try and find out the reason for this.

4. Keep an Eye Out for Positive Press

When it comes to property development companies, UK investors should also be sure to spend time looking online for any news or press which mentions the company. If a property development company’s latest developments have made the headlines for all the right reasons, this is evidence of their strong track record and solid reputation in the industry.

If a company has a lack of news or press coverage online, this isn’t necessarily a sign that they can’t be trusted. Some property development companies who have been around for less time may have simply not yet had news outlets cover their developments. However, if the company has been around for a long time and you can’t find any press coverage about them, or if you find more negative news stories, you should be cautious before going ahead with an investment.

5. Research Their Collaborators

When considering a property investment, residential property development companies are not typically the company you would purchase the property from. Property development companies will usually work in collaboration with property investment companies who will sell the properties on their behalf. This is why researching the property investment company along with the development company is a useful step to identifying the strength of a property developer.

Property investment companies that are well established are unlikely to work with bad property developers. The majority of these companies will research the developers they work with in-depth, and would be sure to avoid any companies they suspected were unreliable. At RWinvest, for instance, we only work with industry-leading property development companies in the UK, offering our clients the best possible developments in the top-performing locations. When researching property investment companies that work with the developer, take all the same steps that you would when researching the development company. This includes learning about how long they’ve been operating for, reading customer reviews, checking for news coverage, and looking at their track record. If the property investment company looks reliable, experienced, and trustworthy, it’s likely that the property development company that they work with will be too.

Invest With RWInvest – Proudly Partnered With the Best Property Development Companies in the UK

If you’ve enjoyed this guide to property development and you’re interested in getting started with property investment, take a look at our current property investment opportunities in the United Kingdom. We work with a range of the top property development companies the UK property market has to offer, all boasting a proven track record of success in bringing new homes to North West cities.

One example of a top UK property development company that we collaborate with is Legacie Developments. Legacie is one of the most popular property developers in Liverpool, with current upcoming projects like Parliament Square attracting high levels of interest from property investors and UK renters.

Since our launch over 15 years ago, we’ve worked with a number of property developers making lists of the top 10 property development companies in the UK, with a total of 121 developments completed over time. By choosing RWinvest, you can make sure your venture is in good hands by investing with not only an award-winning property investment company, but some of the very best UK property development companies, too.

To discuss our available investments in more detail, don’t hesitate to contact us for a helpful chat with one of our property consultants.

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