Bridging Finance News:-Build UK has reported 97 percent of its large contractor members have their construction and infrastructure sites operating – a four percent increase on a fortnight ago.
Members with housing in their portfolios have confirmed 93 per cent of their house-building sites in England and Wales are now open. This is a 68 per cent increase on figures for last month with output rising to 78 per cent compared with 53 per cent a month ago.
However, Covid-19 site operating procedures, which include social distancing, have impacted on productivity, although the trade body said this was improving.
| 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 | ||
Construction sites output has increased to 78 per cent compared with 74 per cent a few weeks ago and infrastructure sites are now achieving 89 per cent output compared with 85 per cent.
Scotland lags behind
The situation in Scotland falls far short of these figures, with just 21 per cent of projects running and output at 27 per cent. It´s hoped that tomorrow the Scottish government will start phase 2 of its Covid-19 route map which will spell out how sites might open for a ´soft start´.
Social housing organisations are urging the Scottish government to increase its 50,000 target of affordable new homes over the next five years to 53,000. Their report Affordable Housing Need in Scotland Post-2021 says this would involve a capital investment of £3.4bn from 2021 to 2026.
Bridging Finance by HZA
Brokers Hank Zarihs Associates said property development lenders were open and ready for business to help builders operating north of the border get back into action.
The Building Engineering Services Association has produced guidance for building owners, landlords and tenants on reactivating buildings safely as the nation moves out of lockdown.