Bridging Finance News:- Construction sites are to open for longer so arrival times can be staggered and smaller developers can defer payments to local councils, the government has said.
Housing secretary, Robert Jenrick, has released a series of measures to support house building including allowing councils to publicise applications using social media.
He announced estate agents, conveyancers and removal firms could return to work providing they followed social distancing rules.
Mr Jenrick said: “Our clear plan will enable people to move home safely, covering each aspect of the sales and letting process from viewings to removals.”
Buyers and renters can complete purchases and view properties in person and show homes can also re-open providing social distancing is maintained.
New safety charter for sites
The government and Home Builders Federation, HBF, has announced a new charter for safe re-opening of sites.
HBF executive chairman, Stewart Baseley, said: “A resumption of work will play a major part in helping the economy recover as well as delivering the homes the country needs.
| Product | Max LTV | Up to 50% LTV | 50.01 – 65.00% LTV | 65.01 – 75.00% LTV | Term & Repayment | Arrangement Fee |
|---|---|---|---|---|---|---|
| Residential
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.43% pm | 0.53% pm | 0.60% pm | Maximum term 24 months No minimum interest or ERCs Interest Fully Rolled Up, Part-Rolled Up or Serviced (subject to affordability) The net advance will be less total potential interest over the term with the gross loan calculated as interest for the entire term and the arrangement fee added. |
1% -1.5%
Full fee added to
the loan. |
| Semi Commercial
Including Light Refurbishment
|
Up to 75%
Lower of PP or MV |
0.6% pm | 0.6% pm | 0.6% pm | ||
| Commercial
Including Light Refurbishment
|
Up to 70%
Lower of PP or MV |
0.75% pm | ||||
| Residential
Heavy Refurbishment
|
Up to 75%
Lower of PP or MV |
0.60% pm | 0.65% pm | 0.7% pm | ||
| Commercial and Semi Commercial
Heavy Refurbishment
|
Up to 70%
Lower of PP or MV |
0.83% pm | 0.83% pm | 0.7% pm | ||
“It should also provide the supply chain with the confidence it needs to accelerate its own restart.”
He described the charter as public evidence supporting the detailed protocols individual builders now have in place to ensure safe working on sites.
Builders Merchants Federation chief executive John Newcomb said: “Over the past three weeks, since the publication of new branch operating guidelines, we have seen increasing numbers of merchants safely re-opening or expanding operations to support their trade customers.
“Housebuilders structured return to site provides even more confidence within the supply chain, and provides further evidence of the construction industry’s determination to assist in the recovery of the UK economy.”
Tradespeople including fitters can operate in homes, provided they do so in line with health guidance.
Bridging Finance by HZA
Brokers Hank Zarihs Associates said the new measures would make a big difference to developers particularly the news that house sales and buying could return to normal.
The brokerage added that development finance lenders were keen to support SME builders with a range of options including instant bridging finance.
Since the lockdown more than 450,000 people have been unable to progress their plans to move house.