London Property Market Bridging finance

Posted by Alternative Bridging Corporation on 24th March 2023 -

The London property market is renowned for its liveliness and diversity, offering an extensive range of properties that range from charming period homes to sleek high-rise buildings.

Property prices in London typically exceed those in other regions of the UK, mainly due to a combination of factors such as its status as a global cultural and financial hub, high demand, and limited space for new developments. This means that there is strong demand for bridging finance in London.

Recent years have witnessed fluctuations in the London property market, caused by various economic and political factors, including Brexit and the COVID-19 pandemic. Despite these challenges, property prices in some London areas remain high, driven by sustained demand from wealthy residents, international buyers, and investors.

At the start of 2023, Hamptons reported that despite a slowdown in the growth of house prices, rental rates remain on an upward trend, with an average increase of 8.3% compared to the same period last year. This growth rate positions January 2023 as the sixth strongest month for annual rental growth since the inception of the Hamptons lettings index in January 2014.

While the metropolis did see some flight before the pandemic, Hamptons stated that the pandemic and the subsequent rise of flexible working has meant far fewer London tenants leave the capital for work.

Property investors are taking advantage of the changing market and many are turning to bridging finance to fund their plans. The persistent demand for rental properties and limited supply is maintaining profitable rent levels, despite many landlords leaving the London market due to EPC regulations and HMO licensing requirements. As a result, some properties in the capital are becoming available for refurbishment to meet current and upcoming regulations, which may generate a high yield in the rental market or significantly increase in value upon completion for potential sale.

Investors in London are expressing interest in a wide range of projects, from basic renovations to converting homes into flats, and at Alternative Bridging Corporation, we have the willingness, expertise, and financial resources to offer feasible bridging finance options for them.