Date published:15/06/2026
As the number of financially distressed, incomplete, or stalled housing developments increases FT Adviser asked Julie Palmer and Matthew Hattersley from BTG, what actions developers and lenders can take and if this suggests that the right housing is being built.
We are seeing a trend in being appointed over part-completed development schemes. These are residential housing schemes, often in the regions, rather than in city centres or on the outskirts of city centres.
Matthew Hattersley, Director at BTG Eddisons
In a lead article on its website, FT Adviser highlighted that zombie companies have been talked about for a number of years. However, the lesser discussed topic of zombie construction is a phenomenon that has been growing quietly and quickly.
Matthew Hattersley, Director in Valuations and Asset Advisory at BTG Eddisons, said:
“We are seeing a trend in being appointed over part-completed development schemes. These are residential housing schemes, often in the regions, rather than in city centres or on the outskirts of city centres.”
These schemes, the article notes, started to increase after the Covid-19 trend towards working from home and the opportunity to move to more rural locations. The smaller developers that had capitalised on this did their sums ensured they were financially viable and got permission to develop.
However, interest rates, material, supply chain, and build costs increased, resulting in these schemes falling into distress and needing support from restructuring teams. The result is that these projects are struggling to be completed and find buyers.
Julie Palmer, Managing Partner in Restructuring at BTG, said:
“The one thing you can’t argue about with property in this country is that we don’t have much land; we’re not making any more and there is a demand for new builds. But the market is sticky at the moment.
“We need to use our existing stock much more effectively because there’s probably stock we can actually recirculate in the market.”
BTG is now at the forefront of building solutions and strategies to revive these ‘zombie’ developments, including uncovering potential buyers or investors and advising the lenders and investors the best way forward.
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