Despite uncertainty in the British economy, the residential development and commercial property market is “thriving”, according to a BridgingAndCommercial.co.uk article from late September 2017.
The UK economy is affected by the unknown factor of Brexit, high inflation and low wage rises. Despite this, there is a lot of activity in both the residential and commercial property markets. Brokers have had a high demand for commercial mortgages and bridging loans to develop property.
There is a large need for new properties and a lack of supply, which is encouraging developers to build more. London, Bristol, Birmingham and Manchester in particular have seen a large increase in construction.
The commercial property market is also strong. This is partly influenced by the weak pound, which has attracted a number of foreign investors to purchase properties at what to them are low prices. There are signs that the pound will strengthen and this could deter overseas investors.
London remains a hotspot for commercial property, but all major UK cities have a buoyant commercial property market. There is plenty of student accommodation development in university towns.
A high demand exists for warehouse, storage and manufacturing spaces, but there are not enough of these buildings available to rent, which is why many businesses take out loans to build their own workplaces instead of renting them. It makes financial sense for a business to own their own buildings as they can profit from capital growth.
With the market strong, there are plenty of bridging loans and commercial mortgage deals available through brokers to finance property deals.