“Property Development Finance Applications Holding Up,” Say Top Financial Experts
Despite harsh conditions in the UK housing market 1st UK Finance a specialist Property Development Finance provider that’s been working with property developers for over 15 years, has revealed that year on year applications for development funding have not slowed in line with falling sales and prices.
The London property market ground to a halt some time ago after successive rises in stamp duty and the controversial 2nd homes tax introduced by George Osbourne, this then rippled out to the rest of the south-east and now the rest of the UK is also now showing signs of slowing down and in some cases falling prices.
Zara McDermott, Director of Top 10 Finance, explained: “The slowdown has obviously impacted on prices and the number of properties sold, however, we have not seen a corresponding fall in applications for finance, enquires from developers are holding up and there is still confidence from SME developers wishing to develop small schemes of up to 20 units.”
1st UK Finance process 3,000 applications per year mainly from developers building schemes with resales values from £300,000 up to £10m.
To find out more, visit www.1-co.uk.
Top 10 Finance has been working to provide developers with finance solutions for over 15 years, in the form of bridging loans and property development finance. The brand’s new website allows property developers to compare rates quickly to secure the best deal.
Savvy property developers across the UK are increasingly turning to developer exit loans to keep their pipeline moving and finance their next project figures show. 1st UK Finance, a specialist Property Development Finance provider that’s been working with property developers for over 15 years, has revealed that it’s seen a 100% increase in applications for this type of finance in the last 12 months.
The increased interest in developer exit loans has been attributed to a shifting developer mindset and the introduction of second home stamp duty. The 3% stamp duty levy took effect from 1st April 2016 and over the last six months, its impact has become evident to the expert team at 1st UK Finance with applications slowing down, particularly in London and the South East. However, this has been offset by a significant jump in developer exit loans, signaling that developers are still confident in their projects moving forward despite hesitation from buyers.
Zara Mcdermott, Director of 1st UK Finance, explained: “The slowdown has obviously impacted property developers, who are sitting on finished projects with capital tied up that can’t be utilised to fund the next development. It’s had a knock-on effect that’s created a vicious circle and having a substantial impact on future development. However, developer exit loans have provided a significant opportunity and the 100% year on year increase in demand we’ve experienced demonstrates there’s an appetite to push forward with new developments.
“Our exit loans act as a bridging loan, providing property developers with capital quickly, allowing them to get their cash out and move onto the next development project, rather than waiting until completed properties are sold. In a market where buyers are a little more cautious.”
Exit finance provides a flexible way to access cash that’s locked in property, typically up to 75% of the loan-to-value (LTV) can be released and refinanced.
To find out more, visit 1-co.uk.
1st UK Finance has been working to provide developers with finance solutions for over 15 years, in the form of bridging loans and property development finance. The brand’s new website allows property developers to compare rates quickly to secure the best deal.
Issued by: Anthony Brindley