Developers

65% of industry professionals believe developers are 'more likely' to buy sites in 2020 due to political certainty



Almost two-thirds of respondents in a specialist finance sector survey (65%) believe that developers are more likely to purchase sites in 2020 due to increased political certainty, according to the latest survey.

A report by Avamore Capital has examined market sentiment regarding the unregulated bridging and development finance space across 2019 and is based on feedback from around 40 contributors, including brokers, developers and service providers.

Other highlights from the report included:

  • lenders kept leverage low at an average of 65% LTGDV for development finance and 68.5% LTV for bridging finance — this created more opportunities for mezzanine and second charge funders
  • conservatism was reflected through longer completion times, from 7.4 weeks in Q1 2019 to 9.2 weeks in Q4 2019
  • contributors suggested that new lender entrants led to prices falling in the bridging space, from 9.24% per annum to 8.16% 
  • more experienced lenders moving into value-add spaces also drove down prices in the development finance sector
  • 90% believed the UK would reach a withdrawal agreement
  • 2020 may yield greater opportunities for efficiency in the affordable housing sector
  • the market for small, high-quality units for the retirement sector is expected to grow
     

You can view the full report on Avamore’s website.


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