The residential property market has enjoyed what some are referring to as a ‘Boris bounce’ following the result of the recent general election result, with confidence across different sectors of the market improving significantly.
Fresh analysis of the property development finance market by Saffron Building Society reveals that the industry is among those benefiting from a noticeable boost since the election.
Since the poll, there has been growth land value, supported by a 17% increase in new buyer enquiries, rising from -5% in November, according to the latest survey by the Royal Institute of Chartered Surveyors,
Development finance offers financial support to small and medium sized developers, providing them with financial security during both the construction and sales phases.
Peter Owen, head of property development at Saffron Building Society, said: “We have started to notice the upturn at Saffron Building Society.
“Our partners have told us that developers are starting to feel more confidence, which over the coming weeks and months will hopefully lead to an increase in lending applications, as buyers take advantage of the improving conditions.”
The recent boost in confidence in the land markets and the gradual increase in values has been strongest in the East Midlands and East of England, where two of the major housebuilders, Barratt Homes and Bellway, have both recently opened new offices.
Property investors and aspiring developers who are considering applying for funding may wish to check out a new guide to development finance, produced as a collaboration between the Federation of Master Builders and UK Finance.
This guide, which highlights the journey from concept to completion, details how best the developer should present a proposal to the funder.
Owen added: “I highly recommend reading the guide before applying for funding as it walks you through the entire process.”