BANKING
Optimism – the construction industry is facing tough times , but there are also lots of opportunities out there .
We are here to address a significant gap in the market by supporting SME property developers and investors with muchneeded funding solutions .
highest number of new schemes per capita of any region , according to the EG report “ Six trends that could shape the CRE market in 2023 ”.
The report adds that BTR operators are keen to enter the family housing market in 2023 , and are increasingly looking at locations outside London .
Base rate up – but mortgage situation improving While the base rate has gone up , the volatility which hit the mortgage market following Liz Truss ’ s mini-Budget last September has thankfully gone .
Mortgage rates around the fourto-five per cent mark may not be as favourable as they have been in recent years , but these strong and stabilising rates offer peace of mind and greater certainty for financial planning .
The appetite for homebuying and remortgages is strong , clearly demonstrated within the residential mortgage market , which hit a sixmonth high , with data from Moneyfacts
showing the number of mortgages on the market jumping to 4,491 in February .
So , while mortgages may not be “ cheap ”, the demand and availability for both residential and commercial products remain high .
Higher rates = more money to lend It is also important to note that a higher base rate environment can help facilitate lending .
A higher base rate makes for more of a “ savers market ”, with some great savings products on the market encouraging savers to invest their money in banks – such as GB Bank – that offer highly competitive savings rates . The more money our savings products attract , the greater lending we can supply to SME property developers and investors in underserved regions .
Not only have our savings products won awards and places in best buy tables , they are also linked to local developments . As a result , opening a GB Bank savings account can also benefit your local area as well as your wallet .
Redevelopment opportunities While a slowing housing market poses problems when it comes to generating returns on development , it can also offer opportunities .
For example , when it comes to redevelopment or the buy-to-let sector , a stalling housing market presents the chance to pick up some bargain properties which can make a tidy profit if redeveloped in the right way and sold as the market starts to revive .
And with rental properties at a premium , this is a potentially good time for developer landlords to expand their portfolios and improve their rental yields .
Tough times but resilience remains We know times are still tough , but we also know property development is an industry built on resilience .
At GB Bank , we are proud to support the property development sector with a range of financial solutions throughout the whole property project lifecycle , to help you meet your objectives and build the projects our economy needs to grow .
We welcome conversations around future opportunities , so don ’ t hesitate to get in touch with us . Visit gbbank . co . uk to find out more .
The voice of business in the Tees region | 65