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BLG Chairman Peter Wade Spoke at HBF Seminar

BLG Chairman Peter Wade Spoke at HBF Seminar

by | Dec 12, 2023 | Uncategorized

In the ever-evolving landscape of property development, adaptability and foresight are crucial elements for success. At the recent Home Builders Federation Finance Seminar in London, BLG’s Chairman, Peter Wade, delivered invaluable insights that resonated with developers during today’s market dynamics challenges.

His key message for the developers was that in times of market uncertainty, do you have your contingency plans in place for your project funding requirements before they are needed?

Developers should ask yourselves: Do you have only a single funder relationship and if yes, what is your back-up plan?

BLG Development Finance: Your Reliable Partner

  1. Consistent Lending Support
    BLG understands that market conditions can be unpredictable, and the need for project funding doesn’t disappear during challenging times. With a commitment to supporting developers through both good and bad times, BLG stands as a steadfast financial partner.
  2. Direct Communication with Decision-Makers
    Developers can speak directly to the decision-makers, ensuring that concerns are addressed promptly and solutions are tailored to meet the unique needs of each project.
  3. Stability through Strong Shareholders and Funding Sources
    With robust shareholders and diversified funding sources, BLG provides a secure foundation for developers, mitigating risks associated with market fluctuations and economic uncertainties.
  4. A History of Satisfied Clients
    With a host of returning customers, BLG Development Finance has demonstrated its commitment to customer satisfaction and project success. This track record is a testament to the effectiveness of BLG’s support and the positive impact it has had on various development projects.

 

Contact Us For More Information

In a dynamic industry where adaptability is key, BLG offers not only financial solutions but a partnership built on reliability, transparency, and a shared commitment to success. As the property development landscape continues to evolve, having a well-thought-out contingency plan and a diversified approach to funding are essential for success. BLG Development Finance stands ready to be your trusted partner, offering stability, support, and a proven track record in navigating the uncertainties of the market.

For further information or to explore how BLG can support your project, reach out to us at 01483 949494 or via email at [email protected] for more information on how we can tailor our services to meet your specific needs. The BLG team is committed to helping developers build a resilient and prosperous future within the dynamic landscape of property development.

Can Artificial Intelligence Save Britain’s Broken Planning System?

Can Artificial Intelligence Save Britain’s Broken Planning System?

by | Sep 26, 2023 | Latest News

If you believe the mainstream media, Artificial Intelligence will either plunge the human race into a dystopian hell where computer programmes terminate at will anyone less than wholly subservient OR will create a sunny upland world where terminal diseases will be diagnosed and treated before we even knew there was anything wrong! The truth, I am sure, is much more nuanced; A.I. will have both benefits and dangers.

A clear strength of A.I. is the ability to review large volumes of data, quickly and efficiently producing synthesised and objectively analysed results. It seems tailor-made for reviewing Planning Applications and providing the object analysis for pre-apps, main applications or appeals. Our planning departments are almost universally under resourced, have been under funded for several years and whilst most planning teams are hard working, skills and experience have been bled dry through lack of investment.

Now I can already hear the howls of complaint that this kind of purely analytical approach reduces the role of the Planning Council, but this is not the case, a substantial amount of planning work is administrative. Reviewing applications for compliance with Strategic Plans and Planning Legislation, reference and negotiation with statutory bodies etc. These in theory have service standards, however in practice those standards are impotent through under-resource. A.I. driven administration will leave more time for Officers to properly advise Committee decisioning. It would also help remove emotions from decisions!

I have written before on improving our Planning System, with no apparent success! An Artificial Intelligence approach may help but regardless fear not – “I’ll be back” with further thoughts!

 

Stuart Parfitt, Managing Director, BLG Development Finance

A Review of the BLG Graduate Rotation Scheme by Theo Athienitis

A Review of the BLG Graduate Rotation Scheme by Theo Athienitis

by | Aug 16, 2023 | Latest News

It is a very proud moment for me to be writing this piece, but I am aware that completing this stage of my career is only the first step and this is now the strong foundation for continued work and learning. I would like to thank all of my colleagues at BLG who gave me the time to ask questions and learn from their experiences. It was invaluable to receive the advice that I was given, not only on how to complete tasks but also in how to support others with their work and provide a stellar service for our customers. I believe I have been given the rare opportunity to truly understand the lifecycle of the development finance sector, having rotated through each department (bar finance!).

In my final interview, our MD Stuart explained to me quite succinctly the transfers and flows of the business. He related the process to an all-encompassing fishing restaurant operation. Loans are the fish and our team all have their own place in creating a beautiful dinner.

“Catch them, clean them, cook them.”

Catching them

The New Business Team at BLG is full of experienced operators who have done countless deals in a number of economic periods. From stories about double digit base rates and the boom and bust cycle of the early 2000s I was enthralled in every conversation I had. Seeing the relationship managers in full flow was a sight to behold, mixing professionalism with personal relationships is a skill that is forged deep within you like a fisherman’s sea legs. A special thanks goes to Perry for always offering his experience when I would ask questions about modelling deals. And to Steve, Dave and Adam who inducted me into their Bristol clan. I had spent three years there at university, but they really made me feel like one of their own.

In my first rotation in Valuations I learnt the underpinning facet of demand in the market. How to value a project. It was something that I was most familiar with but the added knowledge from working with Zahra, Justin, Lewis and David was incredible. The team showed me the value of being sincerely objective and thinking more holistically – seeing a completed scheme as a picture in my mind. I now understand the impact on the saleability of a project that an inefficient floorplan brings, where I would never have considered this level of detail in the past.

Cleaning them

In the Loan Management team I was nurtured by two wonderful people – Lexie and Laura. They helped to refine a process driven approach that I did not realise I was capable of, where taking the time and getting every detail right is of paramount importance. All with the knowledge that mistakes are there to be made and encouraged if they will be learned from. This stage in the lifecycle is where the detail of a project is unearthed. I enjoyed liaising with our panel of incredible professionals, asking queries and picking their brains about how one factor may affect another. This is where the legal foundation of the loan is created and is an intrinsic aspect of how the loan will take shape in its next phase.

Cooking them

The Loan Monitoring team at BLG is a genuine and dedicated team – my thanks to Cecile, Anil, Will and Paul. The construction focus was something that was close to home as my family are contractors and developers. Being on this team was a privilege for me as it was like peaking behind a curtain and seeing how diligent and caring the team is, wanting every project to be a success and knowing every detail, at all stages. It is like a trained chef knowing the internal temperature of a fish on the grill. To my initially untrained eye it seemed as though it was an innate ability. I learned quickly that it only became natural because of the hard work that had been done in the past and the continued monitoring that was done to ensure future success. A special thanks goes to Anil, my mentor, thank you for always being honest with me.

I now take on the role of an Associate in Portfolio Management, working between BLG’s two credit operations departments with a focus on Loan Management. It is my hope that I will aid in the transition of our projects from plans to reality.

Conclusion

Finally, to Peter, Cecile and Stuart, thank you for giving me the opportunity to begin my career in earnest with BLG. I have learnt so much and look forward to repaying your faith in me. You saw my potential and believed in my abilities. It is truly unique for a Graduate to work so closely with the senior management of a company and I have not taken that for granted. I will always appreciate the conversations I have had with each of you.

 

Theo Athienitis
Associate – Portfolio Management

Can AI Help Solve The UK’s Planning Issues?

Can AI Help Solve The UK’s Planning Issues?

by | May 31, 2023 | Latest News

Can AI help solve the UK’s planning issues?

Having had a long weekend to relax and reflect on business, a couple of difference themes came to mind which if combined could potentially solve, or at least partially solve the UK planning issue.

And with all the talk about Chat GPT the obvious place to start to investigate was to ask it some questions and look at the responses. Here are the responses direct from Chat GPT.

How to Fix the UK’s Planning Problems

The UK has a long-standing problem with planning. Too often, new developments are blocked by nimbys (not in my backyard) who object to anything that might change the character of their neighbourhood. This can lead to a shortage of housing, office space, and other essential infrastructure.

There are a number of suggested ways to fix the UK’s planning problems.

  • Give local authorities more power to approve developments without having to go through a lengthy and expensive planning process. This would make it easier for developers to build the homes, schools, and hospitals that the country needs.
  • Introduce a system of zoning. This would divide the country into different areas, each with its own set of rules about what can be built. This would make it easier for developers to know what they can and cannot build, and it would reduce the number of objections from nimbys.
  • Provide financial incentives to developers who build in areas that are currently under-developed. This would encourage developers to build in areas that are in need of new housing and infrastructure, and it would help to reduce the pressure on over-developed areas.
  • Automate the process of processing planning applications. This would free up planners to focus on more complex cases, and it would also help to reduce the time it takes to process applications.
  • Identify potential planning issues early on. AI can be used to analyse large amounts of data, such as planning regulations and environmental data, to identify potential planning issues before they become a problem. This would help to prevent problems from escalating and causing delays or costs.
  • Collaborate with stakeholders. AI can be used to create interactive models of proposed developments, which can be used to engage with stakeholders and get their feedback early on in the planning process. This would help to build consensus and avoid disputes later on.

Of course, there are no easy solutions to the UK’s planning problems. But by taking some of the steps outlined above, the government can make it easier for developers to build the homes, schools, and hospitals that the country needs.

In the meantime, here are a few funny suggestions from Chat GPT  to fix the UK’s planning problems:

  • Hire a team of clowns to dress up as planning inspectors and go door-to-door, handing out lollipops and balloons to anyone who agrees to let a new development go ahead.
  • Create a new reality TV show called “Planning Wars,” in which nimbys compete against developers in a series of challenges to see who can win the approval of the planning committee.
  • Start a new social media platform called “NIMBYgram,” where nimbys can share pictures and videos of their latest objections.

With a little creativity, we can all help to find solutions to the UK’s planning problems.

And not surprisingly AI is already being used in some planning departments today

  • The London Borough of Hackney is using AI to automate the process of checking planning applications for compliance with planning regulations. This has reduced the time it takes to process applications by 50%.
  • The City of Manchester is using AI to identify potential planning issues early on. This has helped to prevent problems from escalating and causing delays or costs.
  • The West Midlands Combined Authority is using AI to create interactive models of proposed developments. This is helping to engage with stakeholders and get their feedback early on in the planning process.

These are just a few examples of how AI is being used in planning in the UK. As AI technology continues to develop, we can expect to see even more innovative ways to use AI to solve planning problems.

Overall and not being an expert user of Chat GPT I was surprised by the quality of the response as well as the facts it had found on existing AI usage, which I was not expecting. Obviously Chat GPT is something that is going to improve and be able to supply some challenging ideas.

Does anyone have any other humorous suggestions on how AI is or could be used to resolve the UK planning issues?  If yes please forward them to BLG?

 

Peter Wade, Chairman, BLG Development Finance

 

An Opinion – 100% Mortgages & Housing Targets

An Opinion – 100% Mortgages & Housing Targets

by | May 16, 2023 | Advice

So 100% mortgages are back! Congratulations to Skipton Building Society for being the first to bring forward a solution to the growing problem of exclusion to home buying, without such innovation there will be a generation effectively locked out of home ownership. Others will hopefully follow.

However demand side innovations is not enough, what the housing market needs so very desperately is “Supply Side innovation”.

As a country we must build more new homes, which means releasing more land for development and a more progressive approach to Planning. Planning departments are under resourced and will only become more efficient with investment and better funding – this has to come from planning fees the public purse is too stretched right now for any other solution. The construction industry needs to put its case forward for the benefits of building, especially improving energy efficiency and sustainability.

But the big push has to come from public policy changes, as Sunak & Starmer slug it out ahead of the next plebiscite we must demand stronger and better housing targets and full commitment to meet them!

Stuart Parfitt
Managing Director

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