There is a high demand and an undersupply of new property, which is why many developers are increasing their construction of new homes and commercial buildings.
Major cities such as London, Birmingham, Bristol and Manchester have experienced a surge in residential developments, reported BridgingAndCommercial.co.uk in September 2017. Many investors in property are from overseas because the weak pound has made property cheaper for non UK investors.
A February 2017 article by The Guardian notes that student accommodation is particularly in high demand in major university towns, with developers expecting decent profits. Some lenders are prepared to give mortgages to students who want to buy a house, with rents from other students sharing the house used to cover the mortgage repayments. This strategy is not without its risks, and parents are usually asked to be guarantors for the loan.
There is a shortage of property available to rent. Some enterprising people are looking at using commercial mortgages to develop purpose-built accommodation or convert commercial property for residential use. The cost of commercial mortgage repayments can sometimes be cheaper than paying high rent in a city. There is an added bonus in that the property should experience capital growth.
There is a shortage of commercial buildings for warehouses, storage and manufacturing. Many businesses are looking to build their own premises because they cannot find suitable rented workspaces.
Developers who want to build more homes or commercial property, or convert existing property for residential use, may wish to use a commercial mortgage broker, who will be able to find the best loan deals to fund the development.