This site uses web cookies · Read our Policy here
International: (+34) 952 198 657
Open navigation menu

Lack of Funding Hits UK Residential Developments

First name: 


Last name: 


Tel. Number: 

IPIN Disclaimer.

  We never share your data with any third parties.

*Note: IPIN investment opportunities are available subject
to location and certain knowledge / experience criteria.

News by Category


United Kingdom  Residential Property  London  Liam Bailey  Development Funding 

Lack of Funding Hits UK Residential Developments

By - Monday 07 February 2011

A lack of funding for residential development in England is causing price increases to slow rapidly, it has been suggested. According to Knight Frank, urban land values fell by one per cent and in Greater London the fall was higher at 2.5 per cent, during the final quarter of 2010.

The only urban market which avoided price falls was the prime London market, which registered no change over the quarter, the property consultant said.

Liam Bailey, Knight Frank’s head of residential research: said: "Funding problems continue to provide major difficulties for developers. In most cases there is no funding available for sites without planning consent and even for land with a consent, loan-to-values of 50 per cent and possibly 60 per cent are the maximum provided."

He added that land values are likely to fall back in 2011, but land transactions are expected to rise.

However, Knight Frank warned that there was a risk that as the level of stock on the market increases as a result of banks restructuring, supply will begin to rise just as demand is falling back.

Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here



*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.

«« Back to IPIN Live

Follow IPIN Global

Latest Content

Recent Comments

Powered by Disqus