- 26th May 2020
- Posted by: DMM
- Category: Development Finance
It has certainly been a roller coaster year so far with ups and downs to challenge us all but what does this mean for developers seeking loans for property development?
It does seem a long and distant memory now but just around six months ago the Conservatives achieved a sweeping majority at the general election and the ‘Boris boom’ closely followed. The beginning of 2020 saw property prices pushing up across the country and optimism abounded everywhere. Yes, that does seem a long time ago.
The impact of the COVID-19 to our industry goes without saying and we will not fully understand the likely appetite for house sales until the ‘new normal’ has time to bed in. The new social distancing rules will mean that estate agents, valuers, etc, will have to adapt quickly to reassure both staff and clients.
“[Rightmove] also reported visits to their website were back to pre-lockdown levels on Wednesday 13th May with almost 5.2 million visits, up 4% on the same day in 2019″
Well there have clearly been many lenders either withdrawing from the market during the crisis and others keeping their cards close to their chest. It is understandable that lenders will want to closely watch how property prices react and the opinion of their valuers.
However, there are still lenders in the market and whilst lending criteria may have tightened, there remains some appetite. There is also some good reason to have some optimism. Earlier this month Rightmove released their monthly report showing “a release of pent-up home-mover momentum.” They also reported visits to their website were back to pre-lockdown levels on Wednesday 13th May with almost 5.2 million visits, up 4% on the same day in 2019.
Miles Shipside, Rightmove director and housing market analyst commented: “The traditionally busy spring market was curtailed by lockdown, but we’re now seeing clear signs of returning momentum, with the existing desire to move now being supplemented by some people’s unhappiness with their lockdown home and surroundings. Some may be unable or unwilling to move now, but those who are ready to take the plunge have jumped immediately into action. Unique enquiries on property for sale doubled from the day before, though we expect consistent momentum to rebuild over several months rather than weeks.
Consequently, time will tell as to full impact of the lockdown on lenders appetite for loans for property development this year, but we remain optimistic that a range of loans will be available. The market may be more complex and stretch facilities may a crucial means of finding loans for property development.
Developer Money Market provide and innovative online comparison tool for finding loans for property development from £25,000 to £100 million plus. The range of loan products is updated everyday and will include facilities for up to 100% LTC, including senior development, stretch, mezzanine, JV and bridging.
The platform is easy to use and will instantly provide a match against the key financial requirements for the development project. We match against the UK region, project type, facility size, your available equity, LTC, LTV and more. Your account allows you to securely manage, update and re-search for loans whenever convenient to you.
Property developers can compare property development finance here!