The Power of Development Appraisal Benchmarking

By Adrian Redmond · 2 October 2023

The UK housing market has been challenging for the last year – falling house prices, higher interest rates and rising construction costs make development even more challenging.

In addition, competing priorities within the sector from compliance responsibilities and the drive to achieve energy targets make the choice to develop much needed new homes much more difficult.

With increasing complexities and risks, developing organisations are on the lookout for ways to both gain a competitive edge and balance priorities. If you’re one of them, you’re in the right place. Development appraisal benchmarking is a pivotal tool, and here’s why.

The Growing Need for Benchmarking

Understanding how your organisation stacks up against others is crucial. Benchmarking provides robust evidence that helps you refine your appraisal criteria and assures your Board that your development activities align with your risk profile. With benchmarking you can

1. Debate your appraisal criteria – armed with data, you can have more meaningful discussions about your project appraisals.
2. Manage risks – knowing where you stand helps you make informed decisions that align with your risk profile.
3. Gain a competitive edge – identifying your areas of improvement by understanding your position in the market to give you a competitive advantage.

Benchmarking is more than just a comparison tool; it’s a catalyst for improvement and ensures competing priorities are aligned to your business plan. This is why the Development Benchmarking Club is growing.

Here is what being part of the club gives members access to:

1. Access to a Power BI Database

They say data is the new oil, and we provide you with fountains of it through our Power BI Database. This enables you to make data-driven decisions that can significantly impact your development projects positively.

2. Detailed Benchmarking Reports

As a member, you’ll receive comprehensive reports that cover the following areas:

• • Scheme Appraisal Criteria: Understand the criteria that are driving success in the industry.
  • Viability Measures and Hurdles: Get insights into the financial metrics that matter.
  • Combined Hurdles: Learn how different metrics interact and influence each other.
  • Programme Size: Gauge the scale at which your competitors are operating.
  • Productivity per Team Member: Measure the efficiency of your team against industry standards.

3. Data Across Five Tenures

Our reports collate data across five different tenures: Social Rent, Affordable Rent, Shared Ownership, Outright Sale, and Private Rent. This gives you a holistic view of the market.

4. Quartile Ranges

We identify lower, median, and upper quartile ranges, helping you understand where you stand and what you need to aim for.

5. Market Commentary

Stay ahead of the curve with our market commentary, which provides you with the latest trends and insights.

Development appraisal benchmarking is not just a trend; it’s a necessity for any developing organisation aiming for success in the UK’s challenging housing market. With our growing community of benchmarking club members, you’re not just getting data; you’re gaining a strategic partner committed to your success.

Ready to join us? Let’s build a more robust, competitive, and risk-aligned future together.

Register your interest

For more information on how to become a member of our benchmarking club, get in touch with Adrian Redmond