development finance. We are at a point where the heat may well be coming off the property market, yet there is more liquidity than ever, fluffed up by artificially low interest rates.
Who would have thought this time last year that we would be on our way out of the EU, Donald Trump would be president, and Leicester City would be Premier League champions. I recently had a new property developer client tell me that his scheme in Buckinghamshire was “guaranteed” and I quickly used the above examples to tell him that nothing, particularly in the property world, is a certainty.
Development finance has been taken to a different level with the surge of money coming into the sector. Top-down pressures from investors and funding lines have already caused some lenders to make mistakes, which in this market are easily rectifiable. However, as and when things take a turn for the worse, these mistakes are undoubtedly going to be a lot more costly.
At Regentsmead we have stood the test of time by doing things sensibly. We help our clients in the long run by delivering sensible lending practices, regardless of where the market is. Unfortunately, I don’t have a crystal ball, however, having learnt from our mistakes in the past, if the market does take a turn we will be very well protected.