What is Design-led Property Development?

Conventionally, a property developer finds land and then tries to maximise the amount of units, whilst generating value through obtaining planning permission - to eventually either build or sell the uplifted scheme for profit.

However, the design-led property developer on the other hand follows this process, but also utilises design and architectural problem solving thinking techniques to unlock the site's potential - with the goal of creating an uplift that delivers a much better product.

At Volume Metric Ltd we are a design-led property development company based in Essex, and in this article we will fully explore this role. We will outline how the design-led property developer solves planning and commercial problems, and what techniques we use that separates us from conventional property developers to unlock the most out of the land value.

The Architect-Developer

There are many ways to become a developer.

Some developers start out as builders, where their experience in construction and dealing with people provided them with a solid base to undertake projects themselves, whether that be on small self-build home owner projects or on a larger scale.

Some developers start out as hobbyists, who may have a higher paid bread and butter job role such as a banker or doctor, and simply have the financial intelligence to have a go at real estate investing because it interests them.

However with design-led property developers, these typically come from someone who has the perspective of an architect, perhaps they worked as an architect or designer before taking the necessary steps to becoming a property developer, or they were an engineer beforehand and they have insider knowledge of how the building process works. This was my perspective. I worked as an architect and designer for decades before I made the leap of faith into property development, and this experience allows me to combine design principles with commercial thinking.

A design-led developer self-initiates projects.

Instead of an architect waiting for the phone to ring for their next client, they take an active role in finding and approaching landowners to search for their next project. Architects spend a lot of time problem solving, and think through design solutions, and furthermore, with a commercial focus, they bring a huge amount of value to the scheme. Therefore in this model, the architect shifts from merely a consultant, to the strategic investor who delivers quality.

Let’s now dive into the process that we at Volume Metric Ltd use to unlock hidden potential in sites all across the UK. However before doing so, please make sure to sign up to our newsletter where you can keep up to date with the latest design and property developer value creation tips!

1 - Discover

First we find the opportunity - using data driven land sourcing tools such as SearchLand, we are able to overlay high risk planning constraints and filter searches so that we can quickly identify hidden opportunities, and importantly, identify any potential red flags.

Then we conduct an initial feasibility study - using the data provided by the Local Plans and NPPF to determine if the site has an unlocked potential. We will also look at previous planning applications and other developments in the area to build a potential strategy that we could use for a proposed planning application. This will form a basis on whether or not a planning application is likely to be successful or not.

Finally, we produce a quick fire appraisal - because even the most well meaning design proposal cannot move forward if the numbers don’t add up. For example, trying to build a £2M dwelling in a heavily HMO area would be highly unusual and frankly risky, so we want to make sure our investments are intelligent, not speculative.

2 - Define

Secondly, we test the opportunity - by making the first big step of reaching out to land owners, our investment and expertise will go to waste if we do not have landowners who are willing to supply the opportunity. Speaking to people, collaboration and making the deal structured in a way that benefits all parties is how we can make meaningful progress to development.

Whilst letters are in circulation, we refresh our knowledge of the planning framework - only then can we understand what the local councils are using as a guide for their Local Plans. This allows us to create a strategy to make it very difficult for the planners to refuse our proposals.

Finally, we develop an accurate appraisal - because the gross development value, build costs and risk to benefit analysis are needed to be detailed in order to confidently move forward to the design phases. Knowing our walk away point from a deal protects us from market disturbances, and allows us to build a strong reputation for delivering quality design-led property developments.

3 - Design

Round three, we deploy architectural thinking - by using design techniques as a tool to explore the site's constraints, by producing volumetric massing studies and layouts to play with initial schemes and start to build a picture in context.

We don’t waste time - because property developers usually have to outsource this element and sometimes due to either poor communication or lack of commercial understanding from the architect, a back and forth happens where time and money is wasted.

We explore opportunities - architecture mixed with commercial viability is a powerful combination of skills, as we believe it’s the key to making better quality houses and buildings that last and shape our lives. We are dedicated to building a better future, and that requires a sense of design control that is linked to the commercial viability and financial element of this process.

4 - Develop

This is where we create value - and how the biggest gains are made. A planning uplift is the process of taking a site with development potential, where the value is still relatively low, and through the process of gaining planning permission on the proposed development, the land will now be considerably much more valuable.

Why? Because gaining planning permission is risky. It requires time, effort and capital to get compliant plans that are guided by the national planning policy framework, whilst balancing market conditions and buildability, only for the council turning around and refusing it.

This is where experts such as ourselves come in - to produce milestones, maintain quality and manage the design process for construction and convince the planners that the development is sustainable and will benefit the neighbourhood and community at large.

5 - Deliver

We make the development a reality - and although this is the most stressful part of the process, it is, however, the most rewarding part of the entire process. It’s the culmination of all the hard work and dedication we put into the investments. Delivery is all about managing the transition from drawings to construction whilst also maintaining the programme, cost and quality control.

Design management of the team is crucial - because ensuring all the subcontractors, designers and consultants drawings are coordinated can be the difference between a dream project and the project from hell! We prefer to use BIM software such as Revit on projects, because it allows for much clearer and efficient use of information and design problems can be identified very quickly.

Achieving clear milestones - because keeping a project on track with a programme that is planned, updated frequently and ensuring subcontractors are coordinated properly, allows the project to stay within the margins set out previously in the appraisal, and keeps everyone happy.

Work with us!

At Volume Metric Ltd we discover new opportunities every day through our desktop studies, with our detailed and defined appraisals, and opportunity through conversations with landowners and site visits. If the site has real potential and the landowner is willing to engage in an options or promotions agreement, we will design and develop the proposed scheme to create a strategy for planning approval. Once planning has been achieved we are dedicated to delivering quality properties - because construction is our passion!

We hope you enjoyed this article, because we feel it best describes how the design-led property developer differs from a traditional property developer, and how they are able to create opportunities to build a better future for the UK, Essex and London specifically.

If you are a land owner or an investor who is looking for a property developer with a design-led mentality then feel free to fill out the contact form below, as we are dedicated to producing quality properties by transforming opportunities into exceptional places.