Small-scale developers

stick_in_the_mud

Hi,

I'm looking at  new flats (small size, lower-end). The bulk of them (as returned by a property website search) seem to be built by very small companies, if the developer can be identified at all. E.g. the company is so small that its accounts don't have to be audited, and the company may only have a handful of employees in total. Should I have any concern about this sort of development?

SarahB16

No you should not be concerned.  Does the developer have a website where you can see their previous developments (just out of interest)?  

What you will need to ensure though is that you are provided with a 10 year NHBC (or equivalent) warranty.  

As long as the flat has been built (i.e. you're not buying off plan) then you should be fine.  

I'd want to know what the annual management charges were though (and what this covers) if you are buying a flat and who the management company is.  

Are you not able to afford to buy a small two bed house instead?  You would not then need to pay the management charges.   

stick_in_the_mud

SarahB16 said:

No you should not be concerned.  Does the developer have a website where you can see their previous developments (just out of interest)?  

What you will need to ensure though is that you are provided with a 10 year NHBC (or equivalent) warranty.  

As long as the flat has been built (i.e. you're not buying off plan) then you should be fine.  

I'd want to know what the annual management charges were though (and what this covers) if you are buying a flat and who the management company is.  

Are you not able to afford to buy a small two bed house instead?  You would not then need to pay the management charges.   

Thanks. 

To take the last question first, for various reasons a house has less appeal, so affordability doesn't really come into it. (My feeling is it would be reckless for me to spend much more than I have in mind, though. and I doubt I could get a house for the sort of money I have in mind--at least not one I could cope with.)

I gave a false impression about how far along I am. For one of the builds (a conversion in this case) I'm looking at, the developer is Titan Property. (There is a reasonably professional website, but I'm not allowed to link it. It's down at the moment in any case.) They still appear to be small enough to have an exemption from audit. For another one, though, the developer is literally a 2-man band, with no web presence.

The sales are estate-agent led. There are 10-year warranties, though not NHBC. The 2-man development uses LABC, the Titan one... something more obscure, I think.

badger09

I’m not recommending or otherwise commenting on this particular company but:

Their website 
https://titan-property.co.uk/
looks has been updated. You can see that most of their developments are for the rental market & several appear fully let to NHS

I was interested in the number of other companies in which 1st named director was involved. Especially those now dissolved. However, a bit more research showed that dissolved companies (Caveat: I haven’t checked them all) are for completed developments. Nothing unusual in that. 

DYOR but as long as the warranties are similar to NHBC, I wouldn’t avoid them simply because they are a small company. 

Mutton_Geoff

Search this forum and the internet for reviews on one of the biggest housebuilders, Persimmon, and see if you still think "bigger is better".