Although most people predicted the Brexit result would mean a dramatic fall in the number of property development loan applications being applied for and accepted, the decision to leave Europe seems to have had something of a reverse effect – at least in the interim.
According to a report published by HouseSimple, there has actually been an impressive leap forwards in terms of UK property supply and demand – with the figures showing a considerable 10.4% rise in the number of UK homeowners investing in new properties, a result which is highly promising indeed.
With the UK property market proving to be more buoyant and resilient than ever, the team at UK Property Finance have also noticed a sharp increase in the number of people applying for property financing products online – which can only mean good things for the residential property development sector on the whole. To boost confidence further, it is true to say that the same can also be said for those involved with commercial property development projects.
UK Development Finance Applications Going Against The Grain
“The UK property market seems to be flourishing in a fashion that is completely ignorant of the expected post-Brexit fall-out – with more and more residential and commercial clients applying for short term development financing than we would ever have expected. With a healthy increase equating to more than a 10% rise in terms of the year on year figures following August 2016, it seems that – unlike some other areas of the British economy – the property development sector is going from strength to strength. Despite the uncertainty involved – the time to buy and sell properties with the intention of improving them via additional development has never been more apt.” – UK Property Finance
Although there seemed to be a slight yet noticeable slump in the figures during August itself – the period since then seems to be more bountiful than ever for those in the residential and commercial property development sectors – although the figures seem to spike and fall depending on which particular region of the UK any particular property is situated in.
In central London, there has been a reported increase of 16.5% in the buying and selling of properties, although other areas such as Hemel Hempstead and Basildon have seen climbs which were well in excess of 50%. In fact, Basildon alone has experienced an increased level of investment activity approaching 70%! This shows that the UK property development market has experienced little, if any, devastation at all following Brexit.
Why Is This Happening?
The two main reasons that the development finance sector seems to be doing so well are the low interest rates set by the Bank of England, and the fact that the pound is actually falling against some of the currencies that it used to dominate. This has meant that investors from other countries – or the more financially astute with eggs in more than one basket – have been able to buy up properties more cheaply, whilst improving them at a lesser cost. In fact, the lower interest rates mean that property development finance has never been so affordable or easy to access – which has meant that companies such as UK Property Finance have experienced a dramatic boost in the number of loan applications that they have received, processed and approved since the Brexit vote took place.
About UK Development Finance
UK Development Finance is a leading provider of fast and effective property development finance products which are aimed at new and existing property developers in search of affordable loan products for any type of residential or commercial building project imaginable. They have exclusive access to a diverse cross section of investors who are able to give the green light for all manner of projects for new and experienced developers who are in search of flexible terms and the most competitive rates available for bridging loans.
UK Property Finance