Over time, uncertainty has long been held up as the source of the property market’s recent downfalls. Property finance borrowers may have been anxious about the political turmoil ahead.
However, with Boris Johnson securing a massive Conservative victory in the general election, there is now at least a Brexit deal on the table and a more concrete future.
Whether you are concerned with property development, commercial mortgages or access to bridging finance, the general election vote is likely to affect everyone. So, what does this result mean for the property market?
Although there has been a range of proposed changes which may negatively affect your position, there is also a range that will positively impact you. We’ve outlined some of the main changes the Conservatives have promised for the property market.
Boris Johnson and The Conservative Party
Boris Johnson has long but his faith into private property developers regarding increasing housing across the UK, which has been shared by the housing minister Robert Jenrick. Although focusing on housing in terms of the public sector, the Conservatives also have a few policies that will affect the private property industry specifically. This includes:
- Allowing councils to use property developer’s contributions to discount homes by a third for local people who can not afford to buy.
- Encouraging long-term fixed-rate mortgages that cut the costs of deposits to aid homeownership.
- Reforming leaseholds with a ban on the sale of new-build leasehold houses and restrict ground rents.
- Abolishing ‘no-fault’ (Section 21) evictions and allowing a lifetime deposit that moves with the tenant.
- Giving greater rights of possession to good landlords.
- Allowing residents to decide on the style and design of development in an area, while encouraging environmentally friendly homes, self-building and supporting modern methods of construction.
- Simplifying the planning system for the public and small builders.
The Conservative majority allows us to understand what to expect in terms of the government’s policies. However, uncertainty surrounding Brexit remains one of the main factors that may affect those in the property development industry. At Finance 4 Business, we work with a range of lenders across the country. This means that during these uncertain times, we can provide financial stability.
We can offer competitive, flexible financing with unrivalled support. Call us on 0121 309 0444 or email us on enquiries@finance-4-business.co.uk for more information about the right property development finance for you.