Our short term bridging loans are for purchase, refinance, property improvement or to unlock working capital for business purposes.
This unique overdraft provides you with a flexible drawdown facility giving you instant liquidity and avoids heavy setting-up costs.
Individually structured loans for residential and commercial projects, with finance available for site purchase, construction and fees, refinance, equity release and to provide working capital. Loans are available up to 90% of the site cost.
Flexible first and second charge non-regulated loans available on terms from 3 to 5 years.
We have a commitment to innovation and with the ever changing financial landscape around us we have designed a range of unique Specialist Lending products that solve a range of property finance needs.
By Jonathan Rubins, Director & Chief Commercial Officer at Alternative Bridging Corporation
The new build property development market is a crucial sector within the housing industry. Understanding buyer demand for these properties is essential for investors. In this article we explore the current state of the new builds market in the UK, examining demand, trends, development finance, and forecasts for 2024.
2023 saw a challenging climate for new build developments. Rising living costs, coupled with high interest rates negatively impacted demand. Additionally, supply chain disruptions affecting the construction industry have led to significant material price increases and project delays. Despite these challenges, the demand for new builds remains high.
Regional variations are a significant variable in influencing buyer demand for new builds. Areas with strong employment opportunities and a healthy supply-demand balance for existing housing stock tend to see more consistent demand for new builds. London, for example, continues to experience a relatively high level of buyer interest in new developments, particularly for properties priced between £500,000 and £1 million. This can be attributed to factors such as limited existing housing stock and a lucrative jobs market.
Affordability has become a key concern for many potential buyers of new builds. Developers are likely to see increased success with projects offering competitive pricing structures and attractive incentives. Government schemes like Help to Buy, did play a role in supporting first-time buyers entering the new build market before the scheme ended in March 2023. With less government support, the issue of is affordability more important than ever in 2024.
Buyer preferences are also evolving over time. New builds which incorporate energy-saving features, convenient home technology, and access to green spaces are likely to attract more interest. Additionally, the rise of remote working has led to a growing demand for properties with dedicated workspaces. Developers who can cater to these preferences will likely be better positioned to capture buyer attention.
Predicting the future of the new build market is inherently challenging as it is influenced by a complex mix of economic, social, and political factors. However, some key trends are likely to shape the new build market in 2024.
With the high cost of living and continuing inflationary pressures, affordability will remain a key concern throughout the year. Developers who can offer competitive pricing and innovative solutions to enhance affordability are likely to see greater success.
Demand is likely to be more geographically and price segmented for new builds. Areas with strong economic fundamentals and well-priced developments are likely to see stronger buying activity.
The trajectory of interest rates will significantly impact mortgage affordability. While some forecasts predict a potential pause or even a decrease in interest rates later in 2024, any significant fluctuations remain unlikely.
The new build property development market in 2024 is likely to be characterised by a focus on affordability, regional variations in demand, and an increasing emphasis on sustainability. Developers who can adapt to these evolving trends and cater to the changing needs of buyers will be best positioned.
Our Development Loan is perfect for developers, individuals and companies seeking to purchase or refinance property. The loan is also ideal for covering site costs, interest, fees and other expenses.
By utilising our Development Loans, your client can acquire development finance without going through the laborious process of using a traditional bank. Typically, your options at a bank are more restricted and the processing time is far longer than ours. These factors can severely limit your clients’ development options and cause costly delays. Both factors can significantly harm the financial outcome of a project.
If you would like to enquire about our Development Loans or any other loan facility, why not send us a message today? If you would like to speak to one of our experienced BDMs over the phone instead, you can reach us on 020 8349 5190.
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