As we all know, the last few months have been somewhat surprising on a number levels. Along with a shock decision to leave the EU, we have had an unprecedented decline in the value of the pound, the subsequent non-arrival of an economic catastrophe, increasing house prices, and across the Atlantic, a reality TV star has become a politician, and our own Ed Balls has become a reality TV star!
I think it’s safe to say, in this new world order, expect the unexpected. However, the recent news from the Chancellor of the Exchequer, that the Government will be launching a £2.3bn Housing Infrastructure Fund to deliver up to 100,000 homes in areas of high demand, is welcome news indeed.
This comes in addition to the announcement in October Two by the Communities Secretary of a £3bn Home Building Fund to deliver over 200,000 homes and up to £2bn to speed up construction on public sector land. However, Mr Hammond has said that the UK must go further, and that the long term issues relating to the construction industry must finally be addressed in a forthcoming White Paper.
Although there are positive noises coming from the Government; we feel it still falls short of the truly addressing the structural problems in the housing sector. Many questions still remain; when will construction companies start seeing the funding? What’s the time frame from the Government? How soon can the fund translate into land purchases where they can start building work?
We believe that once these changes start taking effect, we will see an increase in the funding requirements from property investors and developers, looking to profit from the relaxing construction environment. However, the market outlook is finely balanced against other economic factors, such as the expected forthcoming increase in interest rates in the USA, and the associated risk of increased inflation here in the UK, which may also necessitate a rise in interest rates.
Our analysis going into the new year is; stead as she goes. Once we have a clearer picture of the post Brexit economic landscape after the Prime Ministers announcement in March or April next year, we will then have a clearer picture of what the future holds for the property market and bridging loan industry.
This article was written by Matthew Dailly, Managing Director of specialist bridging loan company Tiger Bridging.
About Tiger Bridging:
Tiger Bridging is a specialist bridging finance provider with over a decade in the market. They provide short term property funding solutions across the whole of the UK, offering bespoke and flexible lending terms.
Their funding is free from the restrictions imposed by larger institutions or the mainstream lenders. Their small stable of valued and fast-moving investors, complemented by a select group of hedge funds, provide a steady and reliable flow of capital to clients. Their culture is bespoke and their attitude is proactive. If the deal makes sense, they we can get the funding, regardless of the credit status of the client.
Company Name: Tiger Bridging Ltd
Contact Person: Matthew Dailly
Phone: 0207 965 7261
Address:Kemp House 152 City Road London, EC1V 2NX
Country: United Kingdom