In 2017, we have seen a marked increase in the number of clients after property development finance compared to 2016.
Enquiries for Property Development Loans
Back in January, we knew that our business would be in for a sensational year. Enquiries for property development loans within the first month of the year were higher than any single month within the previous calendar year.
The momentum continued with increased enquiries continued over the following months, resulting in one of the busiest openings to a year we have experienced in our 10-year history. Here we look at some of the reasons that inspired this boom.
After Brexit, the UK came to a bit of a halt. Even though it would take a few years before anything truly changed, a slight panic fell over the banks. This panic had a large impact on smaller property developers in the UK.
Banks started to – prematurely – stop all property development lending. During this period, we saw an influx of enquiries from developers that had been left high and dry just before they had planned to start work on their latest project.
While the banks have started to lend again, the trust has faded and customers are questioning their authority. Smaller property developers are cautious about trusting guarantees from the banks, instead looking to independent finance companies to secure land and their projects.
Property Developments in the South East of England are becoming more sought-after in 2017. House prices continue to rise steadily and the supply of housing has all-but dried up.
Property development loans have grown in popularity because of this. Developers are looking to capitalise on the current gap in the market for investment, boosted by the fact that houses in the South East are among the fastest selling in the UK.
There are many amazing opportunities in the South East for property investment, and property developers are looking to exploit the property gaps in the market.