Building better or just building more? What South Coast developers really need

At the end of last year, we took a delegation of Vail Williams property experts to the South Coast Commercial Property Show (South Coast CPS), held at St Mary’s Stadium in Southampton.

As a main sponsor, we were delighted to support an event that championed the region’s most significant development opportunities and brought together over 1,300 delegates from across the industry.

South Coast CPS continues to showcase the region as a prime location for investment and sustainable growth, facilitating the connections, insights and partnerships needed to drive development forward both locally and nationally.

The South Coast continues to be a hotspot for investment, with major regeneration and town and city centre schemes gaining momentum.

Projects such as Solent Gateway, Portsmouth’s City Centre North project, the Daedalus Enterprise Zone in Fareham, Centenary Quay in Southampton and BCP’s emerging digital innovation hubs are all contributing to this wave of dynamic change across the region.

Key development challenges for the South Coast

Are we building better, or just building more? This was a key question we posed at one of the sessions we hosted, which was chaired by Gary Jeffries who heads up the Residential Property team at South Coast property consultancy, Vail Williams.

We were joined by a range of panellists, including several developers who spoke about policy and delivery.

Experts included:

• Lee Merrifield – MSP Capital, a major funder to SME developers
• Patrick Waters – Quadrant Estates, representing the Fawley Waterside development
• Ben Walker – Persimmon Homes, one of the UK’s largest housebuilders
• Emma Stainwright – Steele Raymond, specialist development solicitor
• John Beresford – Welborne Garden Village, leading one of the most ambitious housing schemes in Hampshire

Collectively, they painted a clear picture of a South Coast development market which was at a difficult, but transitional moment.

South Coast development viability pressures not insurmountable 

There was broad consensus that development viability remains one of the most significant challenges facing property developers on the South Coast – particularly SME developers. While development revenue has plateaued, build costs and operational costs have risen sharply, creating an increasingly tight margin to work within.

Policy, planning and technology shaping South Coast commercial development trends

At the time of the event, the Budget was imminent, and panellists and wider industry were watching closely for policies to address challenges around planning delays, affordability / viability pressures, funding routes for infrastructure and regeneration, as well as more support for SME developers. For the large part, they were left wanting.

There is also growing interest amongst the developer community in how emerging technologies, particularly AI in the planning process, could help streamline timelines, something we have explored in detail.

Will the Hampshire & Isle of Wight Mayor unlock growth?

A significant area of discussion across the day, centred on the appointment of a Mayor for Hampshire and the Isle of Wight (HIOW) would impact the region.

Based on the performance of other mayoral combined authorities, this could be transformative for the South Coast with one councillor claiming it could deliver ‘extra funding for the region of between £30m and £60m a year for as many as 30 years’. However, whilst candidates are already in place, the elections have been delayed.

A devolved mayor could deliver:

1. Joined-up strategic decision-making

Aligning transport, housing, planning and skills across the region, reducing fragmentation and providing a single point of strategic leadership.

2. Access to devolved powers and long-term funding

Including multi-year investment pots, brownfield remediation funding and control over strategic transport budgets.

3. A clear spatial framework

Outlining where growth should occur, connecting priority corridors, housing targets and employment land to give developers the clarity they need.

4. Integrated transport planning

Ensuring infrastructure delivery keeps pace with development, improving viability and encouraging investment in key sites.

5. Stronger national and investor influence

A mayor acts as a high-profile representative – crucial when bidding for Levelling Up funding, investment zones or large employer relocations.

6. Tools to unlock complex development land

Including mayoral development corporations, compulsory purchase powers and dedicated funding for land assembly.

7. Consistency over time

Mayors offer stable, long-term policy direction, something developers repeatedly tell us is essential.

The success of Greater Manchester and the West Midlands demonstrates the potential impact. For the South Coast, devolution could be the catalyst needed to accelerate regeneration, improve coordination and unlock stalled or strategic sites.

South Coast commercial property at a turning point

The discussions that were had at South Coast CPS highlighted an industry navigating cost pressures, planning delays and structural challenges, but also one filled with ambition, innovation and opportunity.

“The question is no longer whether we should be building better or building more, but how we create the right conditions to achieve both.

“Long-term strategic schemes like Welborne illustrate what’s possible when vision, capital and collaboration come together. But the region must also support its SME developers, streamline the planning system and establish stronger regional leadership if it is to fully unlock growth,” concluded Gary.

The progression of the HIOW mayoralty could provide exactly the strategic alignment, funding and certainty that the development industry needs.

At Vail Williams, we believe this is a pivotal moment for the South Coast. By working closely with developers, funders, local authorities and policymakers, we can help ensure the region continues to thrive – building not only more, but better.