Shadow housing secretary accusing Sunak of massive ‘Bung’ to Landlords9:57 AM, 13th July 2020
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2017 may be proving to be a tough year for Buy to Let landlords, who face increased taxation by the HMRC and a more stringent lending environment as a result of PRA changes, but there are alternative areas of property investment that may actually benefit from legislative intervention this year.
At the start of the year, the long-awaited government housing White Paper was released and it recognised both the importance of creating a diverse construction sector and the significant contribution that can be made by the development of smaller sites.
Consequently, we can expect greater availability of small plots – the Paper said that at least 10% of sites allocated for residential development in local plans should be sites of half a hectare or less – and it also indicated the loosening of restrictive planning regulations.
This is all good news for private developers as it signals greater opportunity for future developments.
Now finance is available that specialises in providing funding for experienced developers who want to maximise their returns through the efficient use of capital. Developers can borrow up to 70% loan to gross development value and up to 90% loan to cost for a range of purposes, including new builds and land with planning permission, heavy refurbishment and extensions and commercial to residential conversions.
Loans are generally available between £2m and £7.5m, however, a bespoke and commercial approach is always taken to each transaction and we have recently completed a loan of more than £13 million to refinance a completed development of apartments in Peterborough.
If you are a developer and you need any assistance with funding your next development, please complete the contact form below and we will be happy to help.
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