01825 749721

Why developers are investing in property right now

The perfect window of opportunity has opened up within the property market for developers.

Danbury-Development funded by Hunter Finance

March saw an accelerated annual property price growth of 5.7%, a spike caused by the change in stamp duty charges.

For the coming months, this spike will have an interesting effect on the market.

Increased property prices can mean a greater return on your investment.

See how much you can borrow for your development project.

Property price outlook for 2016/17

Nationwide’s latest house price index shows a 0.2% price increase for April.

This figure meant that the annual property price growth fell down to 4.9% from the 5.7% the month before.

On the surface, it looks negative, but the forecast is much more positive. Especially if you get the timing right.

Robert Gardner, Nationwide’s Chief Economist commented on the future of the market by stating that “the recent pattern of strong employment growth, rising real earnings, low borrowing costs and constrained supply will tilt the demand/supply balance in favour of sellers and exert upward pressure on price growth once again in the quarters ahead.

Mr Gardner went on to suggest that the rather large increase in property prices in March was primarily due to the changes in stamp duty.

A prime time for investing in property

Predictions about property price increases remain positive for 2016 and 2017.

This is a great opportunity for investors and developers to get the most from property developments.

Give us a call on 01825 749721 to see how we can fund your property development

What the current market index suggests, is that property price growth has eased slightly, but will grow. As Mr Gardner states; employment growth, increased earnings and low borrowing will all contribute to property price growth in 2016/17.

One thing that has a short-term affect on this growth is brexit. As the UK waits for the outcome of June’s vote, property price growth has slowed slightly. There is little evidence to suggest that the result of brexit will have any impact on the property market. Supply and demand wouldn’t be affected by the vote. That’s why we find developers are already investing in their latest projects.

Developers are investing in UK property now as they seek the best financial return possible.

Property prices are likely to be up by 7-8% by the end of the year. So while the market growth slows before brexit, they look for the almost guaranteed long term return after.

Click here to find out about our competitive interest rates.

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