There are rumours of greater buyer activity in the residential market but I am sure you will agree that the messages are very mixed. Some developments seem to be selling reasonably well whereas others, for whatever reason, have hardly seen a viewing for months. Our view is that we are in classic early/mid recession "one step forward, two steps back" mode.
This is what happened in the last recession. In spring 1991 everyone was expecting a significant upturn but it was not for another 18 months that the true recovery started. This followed a prolonged period of lower interest rates. Let's hope that the promised increase in new mortgage lending transpires and that one or two more development funders emerge. These two factors should drive the market towards normality again. In this newsletter we have a piece on VAT that is important for developers that are holding completed properties until the upturn.
We also have the excellent news of an established lender returning to the market and who will consider lending on profitable small schemes. As always, your feedback and loan enquiries are most welcome.
Regards,
Chris
www.cdpropertyfinance.com
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