There’s some uncertainty about whether or not the UK is actually in a recession at the moment. But the current financial downturn and increasing cost of living mean that if we’re not officially in one already, it is likely just around the corner.
In times like this when it feels a lot safer to sit on your cash, it can be hard to know how to keep growing your business.
Below, we share our top three tips to help safeguard your business against recession and remain profitable.
1. Anticipate changing consumer demand
With a recession looming, most people try to hold onto as much cash as possible. And this impacts what they are willing to spend money on, and ultimately, where they can afford to live.
Putting down a large sum of money on a new home, when there’s a lot of uncertainty in the market, suddenly seems like a much riskier move – leading many people to hold out until conditions are more stable.
Many first-time prospective buyers will turn instead to renting as a safer short-term option.
Consumer demand is also aligning with investment appetite.
The combination of the recent buy-to-let investment boom and the wariness of consumers towards buying their first property could unlock new potential for developers in the build-to-rent space.
Being able to quickly and accurately assess the development potential of a site (and see whether it aligns with consumer demand) will help you to get ahead of your competition.
2. Find high-performing areas
Once you’ve tapped into consumer demand, you need to decide where you want to build.
Looking at local authorities which saw comparatively high levels of housing delivery and demand during previous recessions, could give a good indication of robust areas to focus on.
The results from historic housing delivery tests and local house prices should be a starting point for assessing the strength of the market in the regions you’re considering.
3. Never miss an opportunity
In times of economic downturn, it’s important to maximise the potential of any opportunity. And if you do have the cash, be able to move fast on opportunities when they do come your way. As there’s always another competing developer waiting in the wings…
It can be easy to miss out on prospective sites when you’re out and about – either because you’re in a rush, or don’t have the right tech to record the information you need.
With our mobile app, LandInsight GO, you’re able to view site details and ownership information when you’re on the go – empowering you to make informed decisions quickly.
The app seamlessly syncs with the desktop version of LandInsight so you can view, save, and manage your sites when you’re away from the office.
Find out how LandInsight GO can help you to source sites on the move – and never miss out on an opportunity again. Watch webinar on-demand.