This week’s briefing covers planning policy changes, significant contractor insolvencies and selected finance and construction developments affecting UK small and medium property developers and landlords.
THIS WEEK AT A GLANCE
- Government revises final NPPF language so neighbourhood plans must ‘‘have regard to’’ national policy and removes a national expectation to refuse poorly designed schemes.
- Housing Delivery Test rules altered so authorities with up-to-date plans cannot use the ‘‘lower of’’ rule in HDT calculations.
- Ardmore and Curo insolvencies leave large unsecured creditor pools, including subcontractors owed millions.
- Skanska used offsite MEP modules to accelerate Mayfair installation, claiming a nine-week saving versus traditional methods.
- Several specialist lenders completed bridging and forward funding deals, including transactions for a West London care home and a Kingston co-living scheme.
PLANNING & REGULATION
NPPF final wording and neighbourhood planning
Planning Resource reports the final National Planning Policy Framework was amended so neighbourhood plans must ‘‘have regard to’’ national decision-making policies rather than the consultation draft’s stronger ‘‘accord with’’ requirement. The final framework also drops a five-year-old national planning expectation that decision-makers refuse developments described as ‘‘not well designed’’. The changes follow the consultation process and alter how neighbourhood plans and design expectations are expressed at national level.
Housing Delivery Test adjustment
Planning Resource also reports ministers have changed the Housing Delivery Test rules so local authorities with up-to-date local plans can no longer apply the ‘‘lower of’’ rule when assessing the annual home requirement. The amendment removes consideration of unmet local housing need in the calculation, revising how the HDT is applied.
BUILD COSTS & CONSTRUCTION
Contractor insolvencies hit supply chains
Construction Enquirer reports Ardmore Construction Group entered administration on 11 June, with creditors including subcontractors owed around £5.1m and total group exposure listed against numerous potential claims. Administrators noted liabilities linked to prior building-safety disputes and estimated possible exposure ranging from nil up to £300m, while recoveries for unsecured creditors are expected to be limited. Separately, Curo Construction and sister company Curo Interiors went into administration in July, with Curo owing more than 500 subcontractors and suppliers some £21m.
Prefab MEP modules used in Mayfair to shorten programme
Construction Management reports Skanska delivered two multi-service MEP modules for a mixed-use scheme in Mayfair, assembling the units offsite and craning them in over two weekends. Skanska said the modular approach reduced what would have been a nine-week on-site installation, and that offsite manufacture allowed snagging to be addressed before delivery and improved on-site safety and access during installation.
DEVELOPMENT FINANCE & MARKET CONDITIONS
Selected bridging and forward funding transactions
Property Reporter publishes a set of case studies on specialist finance activity. UTB Structured Property Finance provided an £8.5m commercial sales bridge to support the redevelopment of a West London care home. DFI forward funded a 200-bed co-living development in Kingston with a reported gross development value of £80m. Albatross completed a £1.52m bridge across three Somerset commercial properties at 61 percent loan-to-value. These items illustrate individual lender transactions reported during the week.
LANDLORDS & INVESTORS
Landlords warned of potential tax risk after incorporation refinancing
Property118 reports a First-tier Tribunal finding that transfers of property businesses into companies, where existing mortgages were repaid using new company borrowing, can present a technical risk to claiming full Incorporation Relief. The analysis notes HMRC may treat refinancing differently from a company taking over existing debt, and the Tribunal highlighted that the commonly used refinancing model can affect eligibility for relief in some cases. The Tribunal cancelled certain Scheme Reference Numbers in a DOTAS dispute but did not determine individual tax liabilities.
Rent arrears reported at a record low
Property118 cites Paragon Bank research showing the proportion of landlords experiencing rent arrears over the past 12 months fell to 26 percent in Q2 2026, down from 30 percent in Q1. Paragon also reported average gross rental yields of 7.02 percent in Q2 and said 86 percent of landlords reported making a profit from lettings activity in the quarter.
Until next week.
Team PDBC