Generally, uncertainty is in the air, for business in the UK. The property market, however, has come in for some fevered speculation.
Some post-Brexit predictions have suggested a countrywide fall in prices of domestic property around 30%. Meanwhile, as prices have fallen in the south, in parts of the North of England, they continue to rise.
Meanwhile, for many commercial property owners, the prognosis has been bleak, with major retailers demanding landlords drop their rents in response to a consumer spending slowdown.
Here, we ask Rick Flay, director of Blue Bull Finance whether property development is still a viable business option.
“Just as properties and the areas they are in vary, so do the circumstances and needs of domestic and commercial property developers. For would-be developers, the answer to whether to invest lies in securing the right means to do so.”
Are You Making the Right Choice?
Not all areas of the UK are equal when it comes to property development potential.
“It’s important to gain good local knowledge before making a decision, so that you understand what kind of properties are most in demand. This applies to both commercial and domestic developments.”
Along with the necessary research, to thoroughly understand a potential development, there is the vital question of funding.
“You can structure the finance of development projects in different ways. It should be all about tailoring the finance to meet your requirements and how you want to manage payments”
For example, alongside commercial mortgages, there are also financing solutions such as: short-term bridging loans; development finance; HMO funding; pension-led borrowing; and refurbishment loans.
“Different companies will have varying appetites for lending, so it’s vital that you find the right one that can offer you the options best suited to your project. Match your funding needs with the right product and, critically, a provider you can trust.”
Does Uncertainty Mean Opportunity?
While uncertainty has meant a degree of turmoil entering the property market, it can also mean opportunities for those developers who find the right route in.
“Interest rates remain low, which means that developers should be able to secure low-cost financing, providing they choose a suitable funding solution”
Blue Bull Finance provides accessible advice and support for businesses looking funding, specialising in property, business and commercial finance.
It tailors its services to suit the specific needs of each client, offering a range of funding options alongside specialist mortgages.
Discover more about the tailored funding solutions that could create opportunities for you, by calling Blue Bull Finance on 0333 939 8552 or visiting bluebullfinance.co.uk.
