Property Funding Post Coronavirus
Our property funding director David Rainford, provides his insight, and a little bit of positivity in these challenging times.
We are obviously in uncertain times, and Covid-19 is effecting the property investment and development sectors like all others.
I am not downplaying the challenges being faced whether this be non-payment of rent, construction on active sites coming to a halt, schemes ready to break ground effectively being put ‘on hold’ and nervousness around funding and future property prices, BUT the people in this sector have always been resourceful and generally optimistic.
If we ignore those who are seeking to grab headlines and cast doom and gloom there is currently no transactional evidence to support claims around material price reductions, and many of the fundamentals in the sector will be the same when we emerge from the current crisis, hopefully in the not too distant future. Yes we may see some short term challenges BUT – there will remain a shortage of housing over supply; there will arguably be a pent up demand for houses due to prior months inactivity; the post Brexit demand and funds available for investment stock will not have evaporated and construction projects will come back on stream. Equally I believe that the funding market, perhaps with a few tweaks in criteria, will have renewed appetite for development and investment transactions.
During the past few weeks many developers, together with their professional teams, have remained productive moving forward pipeline schemes whether this be through the planning stage, or finalising appraisals ready for funding so they can hit the ground running when the climate improves. The mindset is to ‘push on’ and reflects the positivity and resilience I see in my discussions with clients and professionals – a mindset which we share.
Whilst at Cowgills we remain ready to assist clients during the current crisis, equally we have our eye on the future. We see spending time now working with clients – both old and new – as an essential investment in helping to shape funding proposals, to give the best chance of success when we emerge out of Covid 19 and assisting them in navigating a funding market which I am sure with have changed to some degree.
I, like many, hope we will emerge from the current lockdown over the coming weeks and look forward to renewed activity on the many sites across the North West and seeing new schemes coming through the system into build.
As ever we are always here to provide a listening ear or further advice. Please do not hesitate to contact David directly.
The information was correct at time of publishing but may now be out of date.