Glossary definition
Bulk Discount
A reduction in the per-unit purchase price offered when a buyer acquires multiple units in a single transaction, commonly applied in forward-sales to housing associations or institutional investors. Bulk discounts typically range from 10% to 25% below the open market value of individual units.
Definition
A reduction in the per-unit purchase price offered when a buyer acquires multiple units in a single transaction, commonly applied in forward-sales to housing associations or institutional investors. Bulk discounts typically range from 10% to 25% below the open market value of individual units. Lenders factor bulk discount sales into their GDV assessment, so developers should model both individual and bulk sale scenarios in their development appraisal.
See also
Closely related terms.
Gross Development Value
The total market value of a development upon completion, encompassing all units and any commercial elements.
Net Development Value
The gross development value of a completed scheme minus all costs of sale including estate agent fees, legal fees, and marketing expenses.
Affordable Housing
Housing provided at below market rates to eligible households, including social rent, affordable rent, shared ownership, and First Homes, as defined by Annex 2 of the NPPF.
Turnkey
A development that is delivered fully complete and ready for immediate occupation, with all fixtures, fittings, and finishes in place.
Further reading
Guides that touch this term.
Guide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
RICS Red Book Valuations for Development: What Lenders Require
A comprehensive guide to RICS Red Book valuations in development finance, covering what lenders require, how valuations are structured, and how to ensure your scheme is accurately assessed.
11 min read readReadGuide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readRead
Where it shows up
Finance products using this term.
Ready to apply
Knowing the term is one thing.
Getting it on your term sheet is ours.
Send us the outline. We come back with indicative pricing from the right lenders inside a working day.