But what does it mean for the property market and specialist finance? The property market has stagnated over the past two years, with most commentators blaming ‘uncertainty’ for the lack of consumer confidence.
Many are saying that as a result of last night’s defeat, the UK faces further uncertainty, which could lead to even more reluctance among property investors to move forward. And that this could negatively affect the whole property sector.
But I don’t agree. Obviously, uncertainty is not ideal, and we don’t want to be in a situation where we don’t know what is going to happen after March 29. But just because we don’t know what will happen doesn’t mean that the future is bleak.
At the moment, no- one could possibly predict what our sector is going to look like this year, and yes, it may be a rocky road, but no matter what happens – Brexit, no Brexit, deal, no deal – there are some things that will never change.
For example, people will always need to buy houses and the fact is, there are still more people than there are houses, so property development needs to continue in order to meet growing demand.
And even though there is a lot of scaremongering about a lack of confidence, and people sitting on their hands until they know what the future holds, we have not seen a slowdown in business.
In fact, we have seen an increase in the number of investors looking to redevelop and refurbish properties, and as there have been no noticeable changes in demand for these properties once they are completed, we are happy to continue to lend for these projects.
The only potential issue I can see is that some investors may struggle if their exit strategy is to refinance rather than sell. They may find it more difficult to find refinance options if the mainstream lenders are erring on the side of caution. But that is why it is so important that when looking at specialist finance funding options, clients and their brokers ensure that the lender they go with is able to extend the loan term if the borrower faces delays in securing refinance.