Property for sale in Kent is at a record low
So with still a high demand why don’t they simple build more houses?
Good question. The problem is that local government (the council) and central government do not build any houses any more. There is no such thing as a new council house. The only affordable property build in Kent is by property developers or major house builders.
If you are looking for a new home then you would be better off speaking to local property developers than you would be an estate agent.
Finance is a problem
When you are starting out in the property development industry, you will no doubt look online to learn more about the different types of finance available to property developers. What you might also learn is that a bank will only extend itself so far with a single client. When you ask the bank for more money, perhaps to finance a land aquaistion you might find that the answer is a firm NO regardless of how the figures stack up. The failure of UK banks to lend to the property industry is further hampering the supply of new build property onto the market.
But there is some help at hand
There are a number of companies that have create a service that offers private equity. What this means is that thye will lend money to property developers on the basis of a land and build cost and then subsequent sale value. Note the sale value, this is not for self builders. These lenders are more flexible than a bank and often have shorter loan lead times that the high street lenders. As they are lending their own money there will be a lending citeria but from our research it is still less onerous than a bank.
Below are a number of Kent and South East Developments that have been funded privately.
Surrey Development – 3 bed House, Cranleigh | £420,000 to cover 100% of the build costs
The developer required finance for the build costs of this 3 bedroom detached property in Cranleigh, Surrey
Bosham Detached Property Development | £202,000 loan – including a funds guarantee to the seller
West Sussex clients required two-part finance to secure a the purchase and construction of a prime development location near Chichester.
Detached Property Development, Bognor, West Sussex | £773,000 development loan agreed
Developer obtained planning permission to renovate existing property and build a further three new units.
Large Detached Properties, Chichester, West Sussex | Construction costs were covered by a £1,550,000 loan.
Developers had acquired a large plot of land in West Sussex on the outskirts of the cathedral city of Chichester.