Thursday 20th May 2021
New Home Demand Rising Faster Than At Any Time In Last 10 Years
On the back of the latest report from the Federation of Master Builders (FMB) Scotland, which details that workloads, enquiries and employment levels all grew in the period January to March 2021, coupled with the level of home purchase enquiries growing at their fastest pace for over 10 years, now really feels like the time for SME builders to progress any schemes they currently have planned, to enable them to capitalise on the high demand.
The FMB State of Trade Survey for Q1 2021, the only survey of it’s kind to track the experience of SME construction firms, showed that over 55% of respondents reported increased workloads and that in Scotland in particular the level of enquiries from prospective purchasers continued to trend upwards.
This focus on the importance of SME builders in Scotland is further supported by the Scottish Government’s new Help to Build fund which is focussed on SME builders and is being used as a means to diversify the housing market and reverse the decline in SME construction levels. Without the ongoing activities of SME firms, the Scottish Government are unlikely to achieve it’s annual new homes target .
Availability of suitable development funding is cited as a main factor to development, and this is largely being addressed by several factors including the launch of the new Recovery Loan Scheme, to replace CBILS and BBLS. It is generally accepted that this new product is likely to play a key role for any borrower involved in residential property development. Combine this with the growing number of lenders committing to enter the Scottish Development Finance arena, and relief appears to be coming across the horizon for SME Builders, with now the time to capitalise on it. Even the choice of product types is expanding with mainstream funding now being more and more replaced with Development Bridging. It is only by speaking with the right brokers that any borrower can be confident they are seeing what is available across the whole sector.
With all the new avenues opening up to borrowers, now is the time for any business owner to speak with a properly experienced Development Finance broker to ensure you have sufficient funding available to help your business fulfil it’s potential in as efficient and effective way as possible. Often, they will also bring other experiences to the relationship that will help any developer overcome the unexpected.
14th April 2021
Closely watched private sector data compiled by IHS Markit showed UK construction activity in March hit a six-and-a-half-year peak. It reported ‘robust growth’ in all sub-sectors with job creation in the industry at its highest for two years.
Against this surge in activity, and the launch of the new Recovery Loan Scheme to replace CBILS and BBLS, any borrower involved in residential property development should ensure they are speaking to the right people at the right time.
Several new lenders have entered the Scottish development finance arena, with more due to follow in the next few months. Scotland is increasingly seen as a sensible place for lenders to expand their business activities while insulating against some of the dramatic price movement which can be experienced closer to the M25.
Even the choice of product types is expanding, with mainstream funding now being more and more replaced with development bridging. It is only by speaking with the right brokers that any borrower can be confident they are seeing what is available across the whole sector.
With all these new avenues opening up to borrowers, we would encourage any business owner to take the time to speak with a properly experienced development finance broker to ensure they have sufficient funding available to help their business maximise its potential in as efficient and effective a way as possible.
NUMMUS are perfectly placed to assist our clients find the borrowing which is right for them. We can also bring other experiences to the relationship that will help any developer overcome the unexpected.
What A Start To The Quarter
Thursday 8th April 2021
One full week in to Q2 and it has been an incredible start here at Nummus.
So far, we have become an Associate Member of Homes for Scotland (very proud to be their first in our sector), agreed an exclusive development finance product for HfS members, agreed to support in the design and rollout of bridging and development finance products for established lender who has seen the benefits of lending in Scotland, and placed multi million facilities for our clients. And provisionally agreed the lease on a new office.
Bring on the rest of the quarter, I say!
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