Worried about House Prices & Sales?
The property news this week has been dominated by news of varying drops in House Prices around England and in the UK in the last 12 months.
With average prices in London falling at their fastest rate since 2008 and evidence of values reducing in some of the provincial areas too, some are starting to question whether we are looking at the next recession or financial crisis in the making. If this is true, and your currently constructing, or about to take on a new project, what can developers do to avoid being collateral damage in the worst case scenario?
First of all, whilst prices are dropping in some areas, and various political factors have contributed significantly (stamp duty and BTL policy changes as well as Brexit), there are plenty of areas that are booming. The middle of England, including Birmingham, Nottingham and Leicester, are showing excellent growth numbers, so as usual it is location location location!
Being smart about the type of properties being built, who they are aimed at, and whether that particular market is liquid and hungry, are as critical due diligence factors as ever.
Secondly, if you are experiencing slow sales having completed a project, then there are ways to mitigate some of the financing issues you could be worried about facing.
To find out more, click on the link below to read up on strategies for projects that are slow to sell out:
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- 9 Lenders offering 90% Loan to Cost
- 3 Lenders offering 75% Loan to GDV
- 6 Lenders offering 70% Loan to GDV
- 19 Lenders calculating Interest on ‘Drawn Funds’
- 2 new Lenders in Northern Ireland
- 1 new Lender with Zero Exit Fees