David Hughes: Lockdown returns but lending continues
The economy is likely to suffer once again following the second lockdown being imposed, but the property development sector is showing promising signs of recovery according to David Hughes (pictured), finance director of Signature Property Finance.
The latest figures from the Office for National Statistics highlights the economic recovery following the Spring lockdown, with the August GDP 21.7% higher than April’s low.
However, it remains 9.2% below the levels seen in February 2020, before the full impact of the pandemic.
David Hughes, Finance Director of Signature Property Finance commented: “It is important alternative lenders like Signature work through this new lockdown.
“Throughout the last one, we kept lending and supported our clients because demand was high.
“I expect nothing different this time.”
Hughes suggests that despite the difficulty the economy faces, Signature Property Finance’s lending figures suggest a recovery is evident in the property development sector.
Hughes continues: “Our lending figures highlight the recovery was well under way in the property development sector.
“In the three months August to October 2020, our lending was 227% higher than the same period last year, with the number of deals doubling.
“The average loan size increased by more than 60% too, which highlights the strength of the market and the ambition of our clients to seize the opportunities on offer.
“It is encouraging and shows the wisdom of Signature’s team continuing to work through the lockdown.
“This lockdown will again throw up opportunities for property professionals to acquire, refurbish and develop properties, as long as they have access to the necessary funding.
“It’s important lenders stick to the terms agreed before news of the lockdown spread – no last minute surprises.
“We will again focus on the projects that reflect our growth aspirations and support current clients as they complete deals during the lockdown.
“Signature will again deliver loans by the date needed, on the terms agreed on day one – we do not rely on redemptions to provide new funding.
“This lockdown feels different however.
“Robert Jenrick, The Secretary of State for Housing, Communities and Local Government is allowing the UK housing market to continue operating, with homeowners able to move and construction sites allowed to continue.
“And so will Signature.”