Wolsey comment on the July 2015 Budget
There was little in the budget to reflect on for funders of residential development. It will be interesting to see the impact of the taxation amendments to buy to let on lending. But, given the wider strategic issues on planning , resource requirements and development funding Wolsey do not see it will impact significantly either way on new build nor our speciality of finance for housebuilders.
At the same time, Government figures show a slowing of new build homes completed in May (a drop of 5.8%) and this has prompted a response with the announcement of proposals for a planning 'shake-up' for Brownfield sites to potentially fast track housing projects on disused land. Any such change can only be welcomed. From a residential development finance perspective, Wolsey look forward to receiving any enquiries from housebuilders in a position to benefit and who are seeking development finance for Brownfield sites they find they can now fast track through the planning process.
A grade one opportunity
Barnett Developments, with residential development funding secured through Wolsey Securities, is undertaking a significant conversion scheme in Bristol that is having a big impact on the regeneration of a classic Georgian Square in the heart of the City.
But, it appeared funding had initially been hard to secure. Chris Foulkes, Development Director for Wolsey Securities, explains, "on meeting the developer, we recognised immediately the funding opportunity, where it appeared other funders had not. Despite the challenges of having a Grade One listed facade and in a location that had been neglected for some years, we saw that it was clearly a brilliant conversion scheme and we were able to move quickly to secure the required finance."
17 luxury apartments have been created at Portland House, Portland Square, ranging from one to four bedrooms. Foulkes adds, "this scheme is the first of a number that are transforming the locality and desirability of this central location, which is clearly manifesting itself in the high quality and rapidity of the sales performance. A Grade One opportunity for all involved."
Housebuilder Magazine, 2015
Essentials to funding
Finance is available now for housebuilders across the UK who require funding support....however, what is essential, Stephen O'Brien, MD of Wolsey emphasises, is that to secure that funding, the developer must demonstrate both good build quality and a well priced product.
As a prime example, Wolsey refer to Church View, St Anne's Road, Willenhall, West Midlands, a residential development where Worcestershire based Dunedin Homes are constructing 55 houses and apartments for completion early 2016, with development funding through Wolsey.
"Here in the heart of The Midlands is a superb product coming to the market at the right price for the location. Wolsey's decision to fund it was driven by our belief in the developer, the developer's proposals and conviction that there is a market for the end product," explains O'Brien. "Wolsey welcomes schemes that can demonstrate these core criteria."
From the developer's viewpoint, David Kelly, Director at Dunedin Homes adds, "Securing residential development funding through Wolsey has enabled us to embark on a substantial new homes scheme - it has got us building and driving forward the marketing and selling - and that is what it's all about."
Housebuilder Magazine, 2015