20 million funding drive dedicated to the nation's budding property investors and landlords
Funding drive to support fledgling property investors to enter Britain’s lucrative real estate market, including a staggering 200,000 empty homes ripe for refurbishment and restoration.
Launched to support the nation’s budding property investors and landlords in their fledgling investment projects across the UK property market, MFS CEO Paresh Raja has launched a £20 million funding initiative dedicated to supporting a generation of first and second-time property investors. The drive is targeted at refurbishment and restoration projects, tapping into a staggering 1.4M empty homes across the UK - the highest level for 20 years. Running until June 2018, the £20 million funding drive will be made available to nationwide applicants in the form of bridging loans ranging from £100,000 to £1 million. Applicants and their asset-backed securities will be reviewed based on MFS’ in-house credit analysis and due diligence.
After finding that 30% of UK investors are turning to property over the next 24 months, FlipFinance2017 will help form the foundations of tomorrow’s property portfolios, at a time when the average asking price for a UK house is at a record high of £317,281 and the average period to save for a deposit stands at a staggering two years. Moreover, the nation’s property market is facing an undersupply crisis – there are currently 200,000 homes with a collective market value of £43 billion lying uninhabited across England alone.
As Britain prepares for the snap General Election on 8 June and the formal commencement of Brexit negotiations, MFS’ property investment drive is a timely initiative that will offer investors the fast access to capital necessary to support their short-term investment plans. Almost a year on since the EU referendum announcement, the UK property market has demonstrated remarkable strength, defying speculations of a decline in housing demand. With 30% of UK investors turning to traditional asset classes such as property over the coming 12 months, market demand for property is likely to remain strong. A recent survey of property owners revealed that 88% expect housing prices to rise over the course of the next six months.
However, many would-be property investors, landlords and homeowners face difficulties in accessing finance from traditional lending institutions, inhibiting their investment strategies. According to the latest Bank of England data, a total of 66,837 mortgages were approved for house purchases in March, down 1.6% on the previous month. The number of loans approved for those re-mortgaging also fell for the first time this year to 42,814; meanwhile, the UK’s bridging lending sector grew to £2.83 billion in 2016.
Speaking about the launch of the initiative, MFS CEO Paresh Raja, said:
“In the face of seismic political events this year, the robust strength of the UK property market has certainly proved its resilience. For the sector to continue this impressive growth, support must be channelled to the aspirational investors who will lead this growth forward, a vital objective we are directly addressing through this initiative. There is tremendous value locked in a variety of properties across the nation; without the finance options in place to access them, this part of the property market will remain dormant. To support the refurbishment and restoration projects that are essential to catalyse further movement across the sector, MFS has launched FlipFinance2017 and is very excited to see the results build into fruition.”