Brokers expect developers’ lives to get harder
Nearly two in five (38%) mortgage brokers think it will become harder for builders and developers to secure development finance in the next year.
Noel Meredith, executive director of United Trust Bank, reckoned brokers are jittery about the UK property market following the Brexit vote.
He said: “There have been indications that some lenders, or the funders behind them, have reconsidered their appetite for development finance following the Brexit referendum.
“However, several specialist banks, UTB included, have funds available and are very keen to lend them. UTB’s depositor base provides us with a flexible and reliable source of funding which can be increased as demand dictates.
“Development funding has certainly not disappeared, but the lending landscape has changed. In the last few years, established and newcomer specialist lenders have demonstrated that they are credible and in many ways superior alternatives to the larger banks which once dominated the market.
“If an experienced developer presents us with a well-planned and properly researched proposal which includes good evidence of strong demand for the planned homes at the target sales prices and they can demonstrate previous success of developing for that sector, we will be very happy to consider lending them substantial sums of money.”