New criteria for ‘new build'
New build doesn't deserve the treatment it is being given right now by lenders, some of whom have begun considering ALL properties built up to five years ago as “new build”.
As we all know new build property is the lifeblood of any economy, and by doing this, by classifying anything up to 5 years old as “new build” heavily restricts lending and places stress on an already desolate marketplace.
It just goes to show how small minded these lenders are. Right now they may be sitting smug but when demand returns, the scale of the property supply shortage and the extent of the lag to begin building will be revealed.
We'll need new developers to come to market. New surveyors, new brokers, new solicitors, all these professions have been cleared out since 2007 so when demand returns the supply will lag and this all adds up to prices beginning to skyrocket in 2013/2014.
The government through the FSA could be taking action, but realistically, they seem to be a bunch of impotent idiots with neither leadership nor vision of what gets an economy out of recession.
Of course as a property investor I don't really care. The longer they leave it and the more damage they do, the higher prices will climb… “cha-ching” will be our phone ring tone.
I am thinking more about the first time buyers who will be shut out of the ownership market, the parents who no longer have the choice of helping their kids get on the ladder or perhaps are trying to fund their failed pension.
Don't be caught out: find out today what you can do to take advantage of the current market and begin your property portfolio with us.
Call the team on +44 (0)207 923 6100 or directly on their mobiles. The market has never been better, the shortage never more acute.
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