United Trust Bank - Brokers say the availability of finance will be the key issue in residential development this year
02 April 2014
Nearly half (46%) of the brokers responding to a survey carried out by United Trust Bank have said that the availability of finance will be the key issue in residential development this year.
28% of brokers suggested the availability of land to be the biggest issue whilst 15% were most concerned about the impact of rising house prices. The availability of mortgages and the ‘Help to Buy’ scheme were rated as most important by less than 1 in 10 brokers.
Brokers appear split on whether the government was right to withdraw its ‘funding for lending’ (FLS) support package for residential mortgages with 52% believing it was the right move and 35% believing it was wrong. The Bank of England withdrew FLS support for residential mortgages from February this year fearing it might contribute to rapid house price inflation. The announcement, in November 2013, hit the shares of the UK’s biggest house builders but it remains to be seen if the move will have an effect on transactions or curb rising residential prices.
Noel Meredith, Executive Director at United Trust Bank, commented;
“The availability of development finance has been an issue for brokers and developers these past five years. Although I expect the High Street Banks to gradually increase their willingness to lend I believe this will be on a much more conservative basis than pre-credit crunch criteria and levels.
“In the meantime established specialist lenders, such as United Trust Bank, along with some new entrants to the market have been able to keep developers building when their own banks weren’t interested. Having become accustomed to the flexible, bespoke nature of funding from an experienced specialist lender coupled with the very high service levels offered, there will be many who will remain with the ‘challengers’ even when the bigger banks decide to open their vaults.
“Developers with well-planned and fully thought through projects should be able to find enthusiastic and competitive finance partners if they, or their brokers, look beyond the High Street. Experienced developers able to demonstrate a good track record and a sound financial footing shouldn’t have too many problems finding funding for most types of projects with one of the specialist development finance lenders.”
ENDS
For further information:
Jason Wyer-Smith – Blaze Communication: 07824 818242
Notes to Editors:
To link to our website please use: http://www.utbank.co.uk/
United Trust Bank
United Trust Bank is a specialist bank providing a wide range of secured funding facilities and deposit accounts for individuals, businesses and charities. We provide quick and flexible funding solutions to brokers and their clients supporting sound property development, bridging and asset finance proposals. United Trust Bank takes an entrepreneurial and pragmatic approach to business and we are driven to understand our customers’ needs, to deliver the highest levels of service and build strong relationships for the long term.
United Trust Bank was incorporated in 1955 and has many decades of lending experience. We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our management team has a long history of working together and we employ a team of highly experienced professionals. Our flat management structure minimises bureaucracy, encourages flexibility and enables quick decision making and innovation. As an entrepreneurial and customer focused organisation, we develop our business so that we may continue to meet the evolving needs of our customers and take advantage of new opportunities.
United Trust Bank has successfully operated in the development finance market for several decades. Whilst other lenders have come and gone United Trust Bank has been a reassuring constant for brokers and developers during turbulent times. Building on our deep knowledge of property and credit, our bridging department has expanded quickly to become one of the most respected teams in the bridging industry, winning several awards for outstanding service. Our asset finance department utilises the expert knowledge of the team to offer finance packages secured against a wide selection of wheeled and tracked assets.
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Jason Wyer-Smith
Consultant – PR
Telephone +44 (0)7824 818242
