THE PROPERTY INVESTMENT MARKET IS CLEARLY IN A HEALTHIER PLACE - COLIN SANDERS - BRIDGING & COMMERCIAL
13.02.24
'THE PROPERTY INVESTMENT MARKET IS CLEARLY IN A HEALTHIER PLACE TODAY THAN IT HAS BEEN FOR SOME TIME'
By Colin Sanders, Chief Executive Officer, Tuscan Capital Limited.
Lenders always want to have a clear idea of precisely how the client intends to clear the balance by the end of the term - so it's particularly noteworthy that the last quarter of 2023 saw record numbers of redemptions of Tuscan loans.
More investors were able to refinance or simply pay off their bridging facilities than has ever been the case before, a particularly positive insight into the health of the market right now.
After all, that is largely the result of the improved appetite among BTL lenders.
Lenders are being more competitive in pricing and criteria, and that is making it easier for landlords to move from the initial bridging finance onto longer-term financing, helping them establish a surer footing for their portfolios for the years ahead.
Equally, the improvements in pricing on residential mortgages have attracted some would-be buyers back to the market, providing potential targets for those investors looking to sell on a refurbished property and move onto their next project.
This improved pricing is also boosting confidence among landlords who want to add to their portfolios.
They can see a clearer path out of their initial short-term loan, and the combination of more attractively priced deals and the ability to negotiate substantial discounts off asking prices, means there are greater numbers of landlords considering acquisitions.
We have seen it first hand at Tuscan, with those record redemption levels being matched by appetite for new borrowing.
The final quarter of 2023 saw strong levels of completions, with January going further with the setting of a new completions record.
The property investment market is clearly in a healthier place today than it has been for some time.
Tuscan has always prided itself on being a forward-thinking lender, in the way that we operate and the processes we put in place.
For all of the challenges faced by the market, there are opportunities there too, which is why we have elected to commit to measures which will boost our prospects for the future.
For example, we have renewed a long-term lease at our headquarters in Grosvenor Gardens, while taking on additional space.
Along with the property's physical infrastructure, work has also gone into reinforcing the capital for the business as we expand.
That includes maintaining multiple funding partners with Tuscan signing a renewal and increase to our original debt funding line.
Alongside this, we have entered an additional funding line with a leading challenger bank, which will mean we can offer a wider range of products, as well as providing added capacity where required.
The levels of activity that we have seen in the last few months are enormously encouraging for the property market.
For all the chatter around mortgage pricing over the last year or so, the fundamentals have not changed - we don't have enough homes to meet demand, and that imbalance is only going to add to the appeal of bricks and mortar as an investment asset.
Given this situation, there will continue to be an appetite for short-term loans, as investors need to move quickly.
But to win that business, lenders need to be focused on precisely what those landlords and investors are looking for, combining competitive pricing with a slick process and reliability with the funds themselves.
Our record business levels are a good indication that we are getting that balance right.
To stand out in this market you cannot afford to stand still, which is why Tuscan will continue to be proactive in hunting out ways to further improve our offering and relationships with brokers across the country.
Read the full article on Bridging & Commercial.
For more information or to get in touch with the team, please contact us:
Call Us: 020 7846 9030
Email info@tuscancapital.co.uk
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A range of case studies demonstrating examples of previously completed loans can be found here.