Financial pressures and planning delays drive Sigma Homes to shift towards land acquisition and planning
West Sussex-based developer Sigma Homes has announced it will focus on land and planning transactions going forward, as housing delivery has become less viable for small and medium enterprise (SME) developers.
The decision was made following a review of UK housing market conditions, with the company’s shareholders concluding that the risks and financial pressures associated with housebuilding outweigh the potential returns.
The strategic shift comes as (SME) developers are finding it increasingly difficult to cope with ongoing challenges such as prolonged planning delays, rising building costs, and higher interest rates.
Geoff Potton, chief executive of Sigma Homes, commented: “The last few years have been exceptionally difficult for SME housebuilders. While we have successfully delivered 20 developments, the mounting challenges - particularly in planning, regulatory controls, and utilities infrastructure - have made the development process increasingly unviable.
“We will continue to progress our live sites and uphold our excellent customer service and warranty provision for our current homeowners. However, we do not intend to pursue any new short-term land development projects in the current market. Instead, our focus will be on leveraging our expertise in land acquisition and planning, to unlock new opportunities and maintain a strong presence in the sector.”
Potton said the firm already has several land opportunities for 2025, including a site with outline planning permission for 50 units in the village of Dunsfold, Surrey, and further projects in the pipeline across Hampshire, Buckinghamshire, and London Boroughs.
>>See also: Homes England announces near doubling of loan fund for SME housebuilders
>>See also: SMEs feel industry favours large housebuilders, says new report
Sigma Homes was set up in 2013 and has built nearly 300 homes across Surrey and Sussex. It hopes this new business model will help expand activity beyond its base.
No comments yet