Many agents are pricing properties on the basis of before and after Brexit, with prices showing a variance of as much as 15%.
As the economy weakens, this could be a more marked variance, cushioned possibly by lower interest rates, although there is not a long way from 0.5% to zero.
London has long been frothy and is due for a correction, but no bubble bursting.
Although there appeared to be some market cooling pre referendum, many suggest this was long overdue as prices have long outstripped increases in earnings and so many young people (and not so young) feel permanently shut out of home ownership.
It is hard to see no future in being a homeowner whilst battling with job insecurity a cycle of landlord rent hikes, flat moves and unreasonable landlord behaviour.
Our new economic world is also expected to deplete the number of houses available, and indeed that will be built at a time of chronic undersupply that has been the hall mark of the last twenty years because the large housebuilders keep most of their vast land banks as plots, rather than putting homes on them. When faced with stock market surprises and materials inflation, through a weak pound, whilst losing 25% of their value with share and profit mark downs, hibernation and wind back is the only result as history tells us.
At Go Develop, we offer 100% full JV funding to the smaller developer, so we can cut through the blockages of funding and changes in other lenders terms. We have substantial funds, we are decision makers, not policy makers, with exciting schemes across the country that out perform the big boys.
So it’s the smaller developer’s opportunity, make it happen or watch it happen, it’s your choice; we are here.