How much do property developers make in the UK

March 21, 2022

Image by mastersenaiper via Pixabay

Property development is often a lucrative investment and due to this, the number of property developers in the UK is steadily increasing. With the government encouraging growth in the industry and inadequate housing rife, the property development market is experiencing a massive boom. As a result, there has never been a better time to join the industry and create a property development empire. 

Although there are some risks involved in becoming a property developer, you can still make a good amount of money in the industry if you learn how to maximize your profits. If you want to learn how much property developers make in the UK, read on to find out more.

 

How much do property developers make in UK?

A property developer makes an average income of £43,487 per year in the UK. Some of the highest paying cities for property developers in the UK include Southwest London (£61,760 per year), London (£50,841 per year), East London (£45,229 per year), Chertsey (£40,000 per year), Manchester (£36,665 per year), Stockport (£35,051 per year), and Northampton (£24,515 per year).

 

What you need to become a successful property developer

Property development can be an expensive venture, and unless you have a sum of money saved to begin a property development project, you may need to borrow money. If you are thinking about getting into property development as a full-time career and earning a good salary, here are some tips to follow to get a competitive advantage over others.

 

Have the right mindset

Before you get into property development, you must believe that it is possible to become successful. Whatever activity or project you want to undertake, you must start by believing in your success. Having the right attitude will also attract clients and help you build long-lasting, positive professional relationships.

 

Do your research

Ensure you develop and expand your knowledge of properties, including areas such as real estate, project management solutions, AI solutions, impact investments and digital investment solutions. It is advisable to network with other professionals in the real estate industry so you can learn about all aspects and elements of property development.

Subscribe to a newsletter or magazine for property developers so you can stay up-to-date with industry news and insights.

 

Organise your time

While it may be tempting to quit your current job and start developing properties full-time, you must consider your cash flow and long-term financial security. Rather than committing to property development full-time for your first project, it may be more beneficial to work on the project part-time or during your free time (e.g. evenings and weekends). This will ensure you are still receiving a steady income which can account for unforeseen costs which may arise over the course of the project.

 

Use the right tools

Since property development is a multifaceted business field, the right tools and support are crucial to the success of your projects. In today's modern world, property developers can use digital tools and technology solutions, in addition to physical tools and manual labour. Many property developers are leveraging the power and convenience of AI solutions to manage their project work and save significant amounts of time and money too.

As a property developer, you should consider using investment assistants such as Proverest, a PropTech system that will give you tools for calculating real estate investment attractions in real-time. Such tools go a long way in simplifying and accelerating property investment and development. Real estate is a competitive market, therefore, the more professional tools and information a property developer has at his disposal, the more they will gain a competitive advantage.

 

Secure funding

If you do not have a lump sum saved for a property development project, finding funding may be one of the most challenging things to do in property development. There are multiple funding options available, for example, you can use a joint venture partner's money, bridging loans or the bank's money to buy, refurbish and refinance a property. The UK is often seen as a desirable place for property investment which means it's possible to attract a joint-venture partner from abroad by showcasing your skills and knowledge in the property business.

 

How to source profitable projects

There are plenty of options a property developer can choose for sourcing property development opportunities. It's essential on the first development to have a clear direction of how you will approach the available opportunity and consider the exit strategies you will use.

One of the most popular development strategies for a first-timer is the distinctive residential buy to let, where someone buys a residential property with the sole intent of renting it out to tenants.

Others make larger properties into HMOs (Houses with Multiple Occupancy), where the property developer doubles down on their income and generates multiple rental revenues every month. If you are considering developing a HMO, ensure you do research on demand for housing in the location of a property. For example, HMOs are often very popular in university towns as they can house multiple students.

Another option is property flipping, where you buy a house, refurbish it and sell it as soon as possible to make a quick profit.

 

Get in touch

Property development is growing steadily in the UK. However, it is not without its risks. Not all properties can make you a significant profit, but with the right strategy, you will see high income from your developments and earn a decent salary each month. If you would like more information about how much property developers make in the UK  and what digital tools can ease property development tasks, get in touch with the team at Proverest today.

By the team at Proverest, Published March 21, 2022

Proverest Administrator

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