Three months on from the EU referendum vote, we take a look at property development finance options and what changes we have seen since the vote to leave.
Property Development Finance Now
On the 24th June, the decision had been made to leave the European Union and some companies began to panic. Large lenders and banks immediately began to stop lending, but their read of the market was purely pessimistic.
At Hunter Finance, we suddenly saw an influx of enquiries for property development finance in the south east of England. Developers were keen to secure the financial future of their developments, with a strong belief that the property market would remain stable.
The post-brexit property market
Last month, the Office of National Statistics released the latest house price index figures for July. The figures were the first to show what impact brexit has had on the market.
Annual house price growth remained above 8% within the UK, which was good news for property developers. A continued rise in house prices endorses property as a great addition to an investment portfolio.
As we deal with property development finance within the south east of England, we can see a much brighter outlook for the property market compared to areas north of London. House prices continue to rise at over 12% a year. This is mainly due to the commuter communities that continue to grow south of the capital and the lack of housing to accommodate them. Profitability in mind, the south east remains a very stable market to invest in.
Property Development Finance going forward
At Hunter Finance, we continue to offer our bespoke property development finance, and that won’t change. The property market in the south east is expanding and growing rapidly. The latest facts and research are showing that houses continue to be in high demand.
While this can not be said for the rest of the country, London will always be in dire need of housing. That was never going to change, something that has been realised by the recent house price index figures that have been released for the post brexit market.