What to Do When a Residential Site Stops Making Sense

How capital stakeholders can triage a troubled scheme and protect upside

Not every site plays out as planned. Maybe sales haven’t started. Maybe costs have jumped. Maybe the GDV was optimistic, or planning’s holding things up. Whatever the reason, there comes a point where you stop asking “how do we deliver this?” and start asking “should we?”

At Arqhaus, we help lenders, receivers and capital partners get clarity fast – assessing viability, validating assumptions and designing a route out where one isn’t obvious. This guide shares how to triage a scheme when it’s stuck, misaligned, or quietly bleeding value.

Step 1: Identify the Real Failure Point

Most stalled sites aren’t failing for one reason – they’re failing for several small ones that add up:

• Misjudged GDV or unit mix

• Unrealistic absorption rates

• Design inefficiencies (non-standard layouts, limited flexibility)

• Shifting funding terms

• EPC exposure or future compliance risk

Ask:

Would we fund this today, based on what we now know?

If the answer is no, that’s your start line.

Step 2: Reassess Market Position and GDV

Developer-side optimism often clouds hard pricing logic. We use real-time data and local absorption evidence to re-anchor GDV. Not what you want to hear, but what the market will bear.

We then overlay this with buyer appetite, tenure alternatives and pricing scenarios based on:

• Current vs target EPC

• Tenure repositioning (BTR, discounted market, etc.)

• Phasing potential

Step 3: Define the Exit Envelope

You don’t need a 300-page recovery plan. You need a viable exit envelope that defines:

• Likely sale routes (asset, parcels, tenure-led)

• Delivery sequencing (if continuing build-out)

• What needs to change (design, phasing, price)

Sometimes that means full disposal. Sometimes it’s a case of reshaping the scheme to unlock cash flow or funding. We help you work out which – and how.

Step 4: Get an Independent Viewpoint

Your developer’s still trying to deliver. Your funder’s still trying to protect position. Arqhaus sits outside that providing fast, forensic insight for people holding the capital risk.

We’re not here to reimagine the dream. We’re here to give you a clearer, colder view of what’s now viable.

Need a Second Set of Eyes?

If you’re carrying exposure on a stalled or misaligned site – or you’re worried that’s where it’s heading – we offer informal triage sessions to assess viability, risk and next steps.

Request a confidential review →