Why Seek Property Development Finance?
When you’re embarking on a property development project, finding external finance usually through a lender can provide a number of advantages.
There are many finance options open to you, although of course there is no guarantee that every project will be approved, but, as an article for Business Matters recently noted, there are a host of advantages to seeking property development finance from a lender.
The main reason to take this approach is to enable you to take on a larger project than you would be able to if you were restricted by your own funds. If you’re developing a property with the intention of selling units quickly, short-term finance can be arranged to help you with the development until you are able to find buyers.
You can also use property development finance to enable you to work on more than one site at a time, or to fast-track a project, helping you make cost savings and realise a profit more quickly.
The news provider also pointed out that seeking external finance for a property development project helps spread the risk and takes some of the pressure off the developer, who will know that funds have been secured to see the project through to completion.
It appears that the UK construction sector has bounced back strong after the lockdown that saw work shut down on many sites around the UK.
The latest IHS Markit/CIPS UK Construction PMI for June showed that activity rebounded sharply last month as the lockdown restrictions across the country were eased.
The total activity index for UK construction jumped to 55.3 in June, up from the 28.9 recorded in May. Any figure over 50 puts the index in positive territory and this increase indicates that construction firms and developers are confident and ready to start building again.