A survey by bridging lender MFS has revealed that the majority of the British public would prefer not to live in a new-build development. 81% of UK adults surveyed reported they are ‘unenthused by the prospect of living in new-build housing developments’, whilst 60% felt ‘there are too many poorly-built, unattractive new builds popping up across the country’.
The survey results should send a message to those looking to secure property development finance: many Brits are unimpressed by the quality of new-build developments on offer. 41% went so far as to say that new-build properties are ‘eyesores within their localities’.
Property development finance for older properties
The research cites the charm of traditional properties as one of the reasons the UK remains an attractive destination for property investment. Emerging markets can complete with the UK in terms of new build developments, particularly in the luxury bracket—but few of these markets offer the level of prestigious heritage properties the UK boasts.
From aristocratic manor houses to charming country cottages, many older properties in UK offer ‘historical legacy and unique architectural integrity’. Many of these properties require modernising—in fact, the survey also revealed that 79% of respondents felt the Conservative government ‘should focus more on supporting the refurbishment of run-down properties to meet housing demand’.
How to secure property development finance
Securing property development finance to refurbish old properties can therefore be a lucrative path for property developers. The statistics from the report support this: ‘refurbishment projects have become an increasingly popular investment venture for those seeking a fast turnaround – approximately 30,000 homes sold in England and Wales in 2015 had been previously bought less than a year earlier. Of these, 95% of the homes sold had been refurbished in the interim.’
So if you’re a prospective property developer looking for a project with a fast turnaround, the refurbishment of an older property is a very viable project to consider. Although we regularly arrange finance for new, large-scale developments, we can also support you with securing a refurbishment mortgage and a wide range of property development finance products.