York housebuilder says planning delays and red tape are holding back SME developers
Finding land to build on in York has never been easy. With its historic streetscape, tight planning constraints and limited supply of development sites, opportunities are increasingly rare.
For Simon Gibbons, managing director of Yorkshire-based developer Palladian Homes, that scarcity is one of the reasons his latest project stands out. The company is creating four individually designed homes on a former orchard off Tadcaster Road, close to York Racecourse and the Knavesmire.
But while Orchard Place highlights the continuing demand for high-quality housing in sought-after locations, Simon believes it also illustrates the growing challenges facing small housebuilders across the country.
“The Government is basically killing off the small developer,” he says. “Small developers bring most of the higher-quality schemes and, combined, we contribute quite a few units to the housing market, but they don’t seem to be helping us.”
Established 14 years ago, Palladian Homes specialises in small developments across Yorkshire, typically building between two and 20 homes at a time. Unlike volume housebuilders, Simon says every site is designed individually rather than using standard house types.
Yet, despite repeated government pledges to boost housing delivery, Simon says smaller builders are finding it increasingly difficult to bring schemes forward. “The planning process is a huge strangle to us,” he says.
“I don’t think enough focus is being put on smaller parcels of land. Councils look at big swathes of land to tick the housing target box and those are largely geared up to the national builders.”
He points to Palladian’s proposed development in Ripon, where plans for around 20 homes have been progressing through the planning system for more than a year. “We keep taking two steps forward and one step back,” he says.
Alongside planning delays, Simon says rising build costs, affordable housing contributions and wider economic uncertainty are putting pressure on viability. “Build costs have rocketed and the market is in such a variable state that it’s difficult to commit to forward opportunities,” he says.
That uncertainty is reflected in the wider housing market. While demand remains strong, higher mortgage costs and longer property chains have slowed buying activity, particularly in the middle of the market.
“The mortgage market has been so heavily hit,” says Simon. “The chains involved with more traditional housing have become so long-winded and hard work.”
Against that backdrop, Orchard Place represents something slightly different.
Palladian Homes, which is traditionally known for Georgian and Victorian inspired properties, has adopted a more contemporary barn-style approach at Orchard Place, combining modern materials and energy-efficient construction with design cues taken from agricultural buildings.
The first home to be released for sale is Ashford House, a four-bedroom detached property of about 2,700 sq ft. The £1.35m home features a large open-plan kitchen, dining and living space opening onto landscaped gardens, alongside a separate living room, home office and a ground-floor bedroom suite. There are three further bedrooms on the first floor.
Palladian bought the site in October last year. It already had planning permission, allowing work to begin quickly after a revised application secured approval for design enhancements.
“I think this is probably one of the last opportunities on that road where you could build four houses like this,” says Simon.
The result is a collection of individually designed homes featuring standing seam roofs, extensive glazing and open-plan layouts.
The properties will feature air-source heat pumps, underfloor heating and high levels of insulation, with EPC ratings expected to achieve at least a high B.
Interest has been strong from the start. According to Simon, around 30 to 40 enquiries were generated simply from a roadside sales board.
Louise Hirst, director at Prime Residential, which is marketing the homes, believes the development fills a gap in York's premium housing market.
She says: “These unique detached homes offer sizeable lateral living arranged over two floors and have been thoughtfully designed for flexible, future-proofed living, incorporating eco-friendly technology and highly efficient specifications."
The likely buyers, according to Simon, are affluent homeowners looking for a simpler lifestyle. “What they’re getting is something that’s manageable and secure,” he says. “They can sit out on the patio and not worry about jumping on a ride-on mower.”