Brexit is the big word and will continue to be for the foreseeable future in terms of property investment. It doesn’t seem to matter what is being explored and discussed, when the Brexit word enters the conversation, eyebrows are raised. It could be anything from Scottish property development finance to bridging loans in Scotland. Because Scotland is part of the UK, the Brexit uncertainty cannot be avoided. Despite enjoying a different legal system and buoyant property market, Scottish investors still watch quietly as the Brexit negotiations play out. Those who are in the know however have indicated that Scotland will weather the property development finance issues and come out the other side without being the worse for wear.
Optimistic about Scottish property development finance
Optimists abound when it comes to property development and it’s worth looking at who the real optimists are. After all, can they all be wrong? There are several visible changes that have taken place in Scottish property development and the money exchanging hands within this industry too. Despite the attention it has drawn, few have indicated that any of this is harmful.
Until recently Scottish property development projects have attracted a significant proportion of investors from abroad. Overseas investors dominated the market during 2017 and continued to do so during 2018. The Brexit word certainly didn’t scare them off.
Changes in Corporate Tax relief
There have been some concerns that since the chancellor has moved to scrap corporate tax relief for foreign property investors that interest would wane. The expected drop in Scottish property development and the related Property Development finance has not happened. What is also happening is that UK investors are looking North once more. Probably because they expect to enjoy better returns on their investment and get more bang for their buck.
Miller Matheson executive director of CBRE has made his views clear. In Scotland the market has developed a resilience in remaining buoyant despite the “cloud of political uncertainty” for years. This has meant that the concerns over Brexit have not made a material difference to the investment climate north of the border.
While director of the Scottish Property federation David Melhuish pointed out that the wider issues on Brexit were “too clouded for a real picture”, Mr Matheson points out that this is unlikely to make an impact of note on the market.
Property development finance – UK sourced
What is interesting though is that there is an upsurge in Funding from within the UK. Effectively money from within the UK is now entering the property development market in Scotland. This could be the crucial factor in growing the market when changes to tax benefits for overseas investors become a reality. Scottish Property development finance is beginning to originate from with the UK. And it’s growing. This development is potentially going to become the bedrock on which future project funding is built.
the property development industry in Scotland has been heavily influenced by foreign investment. Consequently many will see the changes as an opportunity for new UK investors. Property development finance is available through highly skilled professional brokers. High street lenders and mainstream lenders are making funds available for this market. A good property broker will however, be able to guide new Scottish property development investors. Alternative financing, if it is needed can be sourced.
Finding the best broker
Belgravia Property Finance have extensive experience in sourcing excellent private finance deals, with specialists able to assist in Scottish property development finance and bridging loans. Always seek out an experienced and reputable broker such as those at Belgravia Property Finance. When investing in property development it is best to ask a niche specialist. For development property finance you can rest assured that the consultants and brokers at Belgravia will be able to guide you. Especially to find the right bespoke arrangements for you.