"Planning delays and review backlogs at local authority level are creating serious bottlenecks. Developers can’t move forward, and that gridlock is threatening housing delivery at scale"
- James Ashworth - Landwood Group
A growing number of UK developers are walking away from unfinished housing projects as planning gridlock and cashflow pressures drive more schemes into receivership, according to Manchester-based property specialists Landwood Group.
The firm reports a sharp rise in part-complete residential developments hitting the market as the aftershocks of soaring material costs and labour shortages continue to bite. Developers are now facing the combined burden of legacy financial strain and a sluggish planning system that’s holding up progress.
“Developers and housebuilders have taken a serious hit over the past 18 months. Material costs spiked at unprecedented levels, and even though prices are starting to stabilise, the financial hangover remains — especially on already tight-margin projects," explained James Ashworth, partner at Landwood Group.
He added that global supply chain concerns and potential US tariffs are adding further uncertainty, increasing the risks for developers and slowing recovery.
“It’s no surprise more schemes are being handed over to receivers or administrators. Projects are stalling, and many developers are simply unable to continue under the weight of these combined pressures.”
The warning comes amid growing doubts over the Government’s ability to meet its target of building 1.5 million new homes before the end of this Parliament. Landwood believes the slow-moving planning process is a critical barrier to progress.
“The system just isn’t moving fast enough,” said Ashworth. “Planning delays and review backlogs at local authority level are creating serious bottlenecks. Developers can’t move forward, and that gridlock is threatening housing delivery at scale.”
Once a development stalls, the path to completion becomes even more uncertain. Buyers face complex risks when acquiring part-built sites: warranties are often non-transferable, construction standards can be unclear, and title or legal issues may delay progress. Even estimating the cost to complete a project can be difficult.
Landwood has recently overseen the sale of several incomplete developments, including:
A 208-unit studio apartment scheme with commercial space in Liverpool
A Grade II listed building in Scarborough with consent for 50 homes and co-working space
A 4.6-acre site in Grimsby, approved for 13 houses
According to Ashworth, these types of assets often require specialist buyers with deep experience — and in many cases, access to cash.
“Part-complete sites are inherently high-risk, and securing finance for them isn’t easy. That’s why having the right expertise matters. We’ve earned a strong reputation for matching complex developments with the right investors and helping our clients in the insolvency sector recover maximum value.”
