A leading figure in the property industry has warned developers that speculative building is not an option in the current economic climate. Speaking at the Resi conference earlier in the week, Gerald Ronson, chief executive of Herald International, has recommended that developers are selective of projects.
"If you are looking to do a development and putting in very little money, those days are long gone, you have got to have proper equity to put into deals to be able to do it," he explained.
"Banks are not the easiest people to deal with at the moment especially if you want to build speculatively."
However, Mr Ronson singled out London - where he is currently developing the Heron Tower and The Heron - as a residential area where demand has remained strong. He said that this is in part due to the influence of overseas investors.
Indeed, the real estate expert revealed that around 40 per cent of sales at The Heron have come from overseas, with the rest from the UK. In particular, demand in London was particularly strong from Hong Kong, India, Russia and Kuala Lumpur.