Busy times at team Davon since our last email update.
During June we had our annual summer cruise on the Solent with a great group of Davon clients. The event has become something of a tradition and the yacht we charter and her crew ensured an exceptional day for us all as always, this year helped along by lovely early summer weather.
For the rest of June, life was then dominated by the EU referendum vote and all the analysis of what might happen followed by the result itself and the rather tumultuous period that followed in the following weeks.
Interestingly, from a Davon perspective, from the Monday following the vote we have had an extremely busy two months. This has taken us somewhat by surprise given the sense of uncertainty that prevailed immediately post referendum and it then being summer holiday period.
We have had a strong flow of new transactions coming in from clients, both new and existing and a healthy number of loans in lawyer’s hands and progressing to completion. The end of summer/early autumn period is set to be hectic for us.
We are not entirely sure what lies behind this post referendum busy period, but one factor may be the uncertainty that Brexit has caused. Less experienced property lenders have come to a halt or reduced their levels of exposure, whereas we continue to be very much open for business as usual.
It does seem that the sentiment of the market and perhaps the UK as a whole with regards Brexit is very much that the world has not stopped turning, that it will take a considerable amount of time for anything to change and that in the meanwhile life goes on.
As we see it, the fundamentals of the mainstream housing market haven’t changed, with supply limited, cost of funding low and strong levels of demand for most types of product. Prime central London and high value units still remain adversely effected by the SDLT hikes of the last 18 months.
The key points to evaluating any funding proposal remain constant – experience and track record of developer, strength of the development proposal, depth of market for units proposed and a good profit margin.
The other encouraging evidence we have seen is a good rate of sales being achieved by our developers across a wide range of geographic locations and types of property.
So, we hope you all enjoy the last bit of the summer and look forward to continuing to assist clients, old and new with funding for their property projects.
Director, Davon Limited
- 0118 9783955