An Interesting Start to 2024
January 12, 2024
An Insight Into Our Trip to MIPIM 2024
April 3, 2024Optimistic Funding for the New Homes Market
Optimistic Funding for the New Homes Market
Optimistic Funding for the New Homes Market
A key sector for our NapeX team, is the New Homes market, which exhibited notable resilience in 2023 despite the consistent rise in mortgage rates. As the new year begins, here’s what we anticipate you can expect from this market for 2024.
New Confidence with Lenders
The availability to buyers of better finance products will be a transformative factor. Not only will it empower those who are seeking the new homes, but also it helps inject a new sense of confidence with lenders. Together this paves the way for more optimistic funding decisions.
Land and Build Costs
For any real estate development the build costs are a critical factor that shapes the viability of construction sites. At this start to 2024, there are encouraging signs that build costs are now more stable, and in some locations there is even a downward trend.
However, we expect that landowners and agents will potentially need to bring land prices down to ensure the success of deals and projects in 2024. Pricing currently is typically above the base rate, therefore we are not anticipating rate reductions in this sector as of yet.
Good Incentives on Rates and Fees
One area that developers could take advantage of at this time is regarding the Energy Performance Certificate (EPC) rating of C and above.
An EPC rating serves as a measure of a property’s energy efficiency, and a rating of C and above indicates a high level of energy performance. In the context of the new homes market, this achievement is noteworthy. It reflects a commitment to sustainable building practices and reduced environmental impact.
Lenders, recognising the value of energy-efficient properties, are offering enticing incentives to developers who meet or exceed the EPC C threshold. These are showing in the form of favourable interest rates and reduced fees.
If you want to know more from our team of experts about the New Homes market, don’t hesitate to get in touch via our Contact Us page.
Case Studies
Take a look at our Case Studies section to see the wide range of funding examples we have secured for our clients.
Our Services
Our experienced team of brokers can assist with many different funding facilities. Take a look through our services section.
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