”Attention is now focused on the potential of major regional cities in the South West, Midlands and north of England, as investors hunt for favourable yields and capital growth”
Meaningful vote reaction: Whilst forecast, the size of the defeat is a real blow to the UK real estate sector. Whilst a lot of the uncertainty caused by Brexit has been priced into the property market, this result is likely to lead to even more reluctance amongst real estate developers and investors to move forward with their UK real estate strategies, which will negatively impact the whole sector.
We expect the regional property markets to continue to attract interest, mainly driven by a slowdown in UK house price growth in the south and east of England. Attention is now focused on the potential of major regional cities in the South West, Midlands and north of England, as investors hunt for favourable yields and capital growth.
While borrowers will become more discerning in the next six months, thereafter the strength of the economy, with interest rates and unemployment low, will support continued growth.
Resolution: Quality of customer service will continue to differentiate the successful and less successful lenders. When we fall short, we should do everything we can to resolve things quickly. We must continue to invest in our people and in the technology we need to support our ambition and our borrowers.
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