It’s no secret that UK house builders face multiple challenges in the current context of global uncertainty.
Chief among them is the viability question.
With limited land and challenging markets, meeting rising materials, labour and regulatory costs requires tighter control and greater understanding of the site specifics.
Simply put, all too often it is not economically or practically feasible to deliver some residential projects and viability decisions can be further compounded by a lack of understanding of the specifics of the land and what may technically be required to mitigate the risks and deliver them.
In fact, 2025 research by Zoopla suggested that building homes is “not currently financially viable across 48% of England” and is “deemed challenging” across 64% of it.
The wide array of pressures is making developers, investors and funders more cautious.
Barratt Redrow’s April trading update noted that due to “recent geopolitical events and their likely impact on mortgage rates and build-cost inflation”, the firm – which has reduced its anticipated spending from around £900m on 12,000 plots to £800m on a maximum of 9,000 – is now “being even more selective”.
The need to understand land
In our Land Quality Service team, we’ve also noticed that those putting their money on the line are placing greater emphasis on de-risking sites.
That’s no surprise; with smaller margins and fewer development opportunities, it’s even more important to have confidence in the land suitability of every location.
And as we’ve explained recently, understanding the geotechnical and geo-environmental condition of your land from an early stage is critical if you want to reduce uncertainty, reassure your financial backers and move forward with clarity as to NHBC's requirements.
Land quality certification is therefore especially popular at present.
By evidencing that your site has been assessed and that factors like contamination, ground stability and foundation approaches have all been reviewed by an independent party, it helps you demonstrate the viability of your project for the long term.
Knowledge is valuable
Of course, it isn’t only the resulting certificate that’s worth its weight in gold.
The process of land quality certification itself helps you reduce development risk by identifying issues early and alerting you to potential conditions that you can then manage appropriately.
A technical review from geotechnical and geo-environmental specialists can help you make more-informed land acquisition decisions, as well as reducing the chances of project delays, disputes and unexpected remediation costs.
Just as importantly, certification increases the value of your sites, too.
A reduced risk profile makes them far more attractive to prospective purchasers or developers, with improved marketability of your land.
In these times, the smoother planning and development processes on offer could be the difference between a site being chosen and it being overlooked in favour of a surer bet.
Investment, after all, is all about confidence.
That’s why it’s so beneficial to show that you have done your due diligence and provide as much transparency around land-related risks as you possibly can.
Settling funders’ nerves by removing uncertainty from project appraisals will help convince them that your site is a realistic, attractive choice for a stable and worthwhile return on their investment.
Rely on the specialists
Our Land Quality Service has been supporting the industry for 21 years, reducing risk, adding value and providing access to experienced, independent experts.
The team provides technical opinions on land suitability, remediation, earthwork specifications and ground improvement treatment to customers including house builders (regardless of whether they are registered with NHBC), strategic land developers, local authorities, development agencies and land agents.
And crucially, receiving an NHBC Land Quality Service Certificate gives you early confidence in your site prior to NHBC registration.
With an assurance that our team has reviewed the investigation, land remediation work proposals and verification work for compliance with NHBC Land Quality Standards, you can smoothen the route to warranty – showing investors and stakeholders that your site is truly viable.
Start your project with confidence
Speak to our specialists early to reduce risk, avoid delays and unlock the full potential of your land.