As a very turbulent 2020 begins to draw to a close, so does the end of the Brexit transition.
As a post-Brexit future looms and the Coronavirus pandemic means adapting to a new normal, many are wondering what this all means for the property market and house prices.
Here at Hunter Finance, we believe that property development finance should be quick and simple.
We understand how up and down the property market can be, so we have compiled some predictions and insights to help make things a little clearer.
If you are considering a construction or property development project, call us today.
People will always need to move
The main constant to remember is that, no matter what happens, people will always need to move – first-time buyers climbing the property ladder, couples getting married, needing more space as children grow up, downsizing when they move out.
Despite many fears that both Brexit and the pandemic will cause a dip in house prices, many professional predictions show that over the next 5 years, prices could increase by a dramatic 20%.
What is Brexit doing to the housing market? Read more.
There are always going to be reasons for people to move house, which is why the property market is seen to be relatively robust, regardless of what happens with Brexit.
The reason behind this robustness is the market’s status as a leading investment class. Learn more about the housing market.
What do investors think?
In times of uncertainty, most investors and property lenders will gravitate towards security and safety.
Leading Investor Simon Zutshi explains that this year means that many have had to ‘pull their belts in to cut costs.’ Listen to his full video here.
Especially in recent years, in particular 2020, investors who usually keep their assets in stocks and shares have seen property as a more reliable and sturdy investment option.
As a result, many have become property developers and invested in properties to rent or sell.
If you are considering property as an investment, talk to an experienced financial lender to get the advice you need.
The weakness of the pound and price growth
A direct consequence of Brexit – the weakness of the pound – though initially seen as a cause for concern, has actually caused a surge in the UK property market.
International investors have used the fall in sterling to their advantage by investing money in both residential and commercial UK premises, which in turn has contributed to rising house prices and demand.
Since the Brexit referendum in 2016, the property market has been consistently growing, even despite recent drops in price due to the Coronavirus pandemic. More here.
Prices have risen almost 7% in the past few years, and are only forecast to increase further. This means that property development is going to become even more profitable.
By taking advantage of this predicted surge, property developers may be able to increase their GDV by about 20%, which seems far more lucrative than placing investments in the more traditional form of stocks and shares.
Read more on how profitable property can be.
However, as with anything, predictions are always uncertain, and the future remains somewhat unclear.
If you are considering property development, ensure that you keep a close eye on the property market and its movements, and consider your various property development finance options.
Currently, 20% of all households in the UK are rented, and by 2021, a quarter of the UK’s population will be in rented properties.
This is due to the rise in millennials, middle-aged renters, tenants with young children, and retired people seeking a more flexible lifestyle.
The private rented sector is thriving, and specialists predict no real change in this industry as a result of Brexit.
Hunter Finance is here to help
If you are considering property development finance options, talk to us today.