The demand for new housing in the UK remains high despite Covid-related disruption in the construction sector
LendInvest has predicted that property development finance has a “strong” long-term future, despite short- and medium-term disruption in the sector.
In a note to investors, LendInvest’s head of development finance, Steve Larkin, acknowledged that development finance has been one of the last forms of funding to be turned back on, post-lockdown.
However, the property lender has also noted that despite Covid-related disruption in the construction sector, demand for new housing remains high.
Despite those medium-term factors developers and lenders have to be mindful of, the long-term future for developments in the UK remains as strong as ever, said Larkin.
He said, there is still a housing shortage and a desire for high-quality housing after months in lockdown, and changing work environments with the growth of remote working may lead to more buyers looking for different types of housing which is more remote or offers more space, all of these demands still need to be met by lenders and developers working closely together.
Going forward, it is important that lenders remember the lessons they learned in lockdown of what their developers need to be successful; that will give them tools to better support them in certain and uncertain times, said Larkin.
Larkin added that in order to meet this demand, LendInvest has made it faster and easier for funding to reach its borrowers, with 24-hour cash drawdowns offered in some cases.
The lender has also streamlined its internal processes to speed up turnaround times for release of funds.
This demand won’t go away overnight and it is up to developers and lenders to meet that need, while being mindful that Covid isn’t over yet, Larkin added.
He said, lenders will need to keep the things they learned in lockdown to keep their clients’ developments moving forward in a new era of partial lockdowns, local restrictions and underlying economic issues this may pose.
