UK homebuilders are profiting as new builds reach records
A report from Gov.uk showed the number of completed new homes in has reached an 11 year high due to the success of some UK homebuilders. Over 170,000 new homes were built this year by June, a figure that represents a rise 8% from 2018.
Optimism for further development
The government has often referred to new, affordable housing as a key goal for the country. Housing Secretary, Robert Jenrick, welcomed the news and looked to further developments. He was quoted as saying “We are moving in the right direction, but there is still much more to do if we are going to deliver the numbers needed by communities up and down the country”.
The graph below shows the number of new dwellings started and completed since 2003/04.
Source: Ministry of Housing
Some Homebuilders enjoy easier conditions
Many UK homebuilders have shown strong performance in 2019 despite the uncertainty of Brexit. The sector has been susceptible to fluctuations in the pound caused by Brexit. However an ease in regulation introduced by the government has helped them to prosper.
Persimmon’s half year results showed a strong trading performance so far in ‘19 with over 7,500 new homes completed. The company also went on to have an optimistic outlook for the remainder of the year.
However not all homebuilders have prospered. Crest Nicholson announced a fall in profits in their trading report this morning, sending their shares down by 10%.
It is worth noting that there are several issues that may affect homebuilders in a post-Brexit world. these include tariffs and the rights of foreign workers.
How a bridging loan can help purchase a new build
When it comes to capital raising for the purchase of a new build, bridging loans are often used. Investors and individuals can borrow between £50,000 and £10,000,000 to purchase property and funding can be in place within days of the initial application.
Bridging loans can also assist investors buying property against open market value, off plan from a developer. Rather than risk losing an initial deposit when a notice to complete is issued, loans can be funded in days.
To get further details on a bridging loan from MT Finance, please call 0203 051 2331 or leave you detail on this contact form.