Government Promises Investment in UK Property Development
Good News as Government Promises Heavy Investment in UK Property Development
The UK Government has recently announced plans to invest billions of pounds into the creation of new residential UK property development.
UK Property Finance, one of the UK’s leading Development Finance firms, is understandably excited by the news:
“With the Treasury itself providing serious financial support for those in the property development sector,” they state. “It seems that the disconcerting issue of the lack of affordable housing across the UK is finally being taken seriously by those in power.”
The investment plan is expected to assist in the creation of 225,000 new homes across the country, with at least 15,000 anticipated to be ready and habitable by 2020. There’ll be, it seems, a £3bn injection to the Home Builders’ fund, with a further £2bn going directly to residential property developments on public land.
Insufficient Funds for UK Property Development?
However, despite this news, there are plenty of voices in the property development sector who don’t believe the figures to be sufficient to overcome the extent of the housing crisis.
“Although the amount of suggested investment is significant,” UK Property Finance goes on to say. “It still seems to fall short.”
Whilst these steps by the Government are, of course, a step in the right direction, the extent of development simply does not match the volume of population expansion. This is particularly the case for affordable housing, as increasing numbers of people are priced out of the property purchase market altogether.
Without sufficient Government backing, some affordable financial backing tailored to the needs of each development is necessary.
Enter Property Crowdfunding!
Property crowdfunding and peer-to-peer secured lending may just be the answer. Allowing investors to build a diverse portfolio of property investments across a range of property types, as well as smaller financial input requirements, the alternative finance sector is promising. A more diverse variety of investors, from high net worth to private individuals can get together to fund development projects that will help towards providing some of that much needed new housing stock.
Despite numerous setbacks, from Brexit to tightening on mortgage lending, the UK property market seems to be remaining buoyant, with optimistic reports for the future.
The property crowdfunding and peer-to-peer secured lending market is one of the major players making a significant difference in keeping the property market moving in the UK. It’s this kind of innovation, as well as the perseverance in the face of challenging times, that is key to building a successful future for the UK property market, and the economy at large.