Market Update – April 2024

Latest Trends and Opportunities

Development Finance Landscape

In 2023, the average time to complete a development finance loan saw a significant 42% increase, taking around 132 days. Rising build costs have been a consistent challenge, up 10% compared to the same period last year and a remarkable 25% surge since 2020. Landlords are currently navigating a 16-year high in taxation, mortgage rates, and maintenance costs, underscoring the importance of strategic financing solutions.

Emerging Market Dynamics

According to Brunton Knowles, buyer demand has been on the upswing this year, with January marking the strongest month since January 2022. Rightmove reported a 15% increase in properties coming to market in January compared to the same period in 2023, indicating a renewed appetite for real estate investments. Letting demand is also on the rise, presenting opportunities for savvy investors.

Regional Hotspots

The northwest region is outpacing the rest of the UK in terms of growth, offering promising prospects for those seeking to capitalize on this momentum. Conversely, the southeast region is experiencing the most significant reduction in asking prices, creating attractive investment opportunities for those seeking value.

Current Trends and Opportunities

The buy-to-let (BTL) and House in Multiple Occupation (HMO) conversion sectors have witnessed a remarkable 30% increase compared to the same period in 2022, reflecting the growing demand for rental properties. Social housing investments are also gaining traction, presenting a potential avenue for diversification and steady returns.

As developments face longer timelines and higher costs, the demand for development exit loans has surged, providing a valuable financing solution for projects nearing completion. Despite the challenges, interest rates are expected to stabilize and potentially decrease later this year, offering a potential respite for borrowers.

Whether you’re a seasoned investor or exploring new opportunities, our team of experts is well-equipped to guide you through the ever-evolving market landscape. Contact us today to discuss tailored financing solutions that align with your investment goals.


Get in Touch

Contact us to schedule your initial consultation and discover how Elleah Property Finance can support your next project’s success.