Hot property - what's going on with the UK housing market

The UK housing market is hotting up if the latest figures from lender Nationwide are anything to go by. According to Nationwide, the UK recorded its fastest annual house price growth since late 2022 in August, with cheaper mortgages driving a slow but steady recovery in the property market.

This was supported by figures from the Bank of England which also showed firm demand in the housing market with the number of mortgage approvals reaching the highest level in almost two years, up 2.3% month on month to 62,000 in July.

During the month, consumer mortgage lending rose 7.7% to £2.8bn, the highest since November 2022 when borrowing hit £3.3bn.

So far, so good.

Data is of course important, but so too is anecdotal evidence and you only need to take a look at listings apps such as Rightmove to see that property is sticking with the super prime market also affected by this.

This presents opportunities for both acquiring and selling such assets.

When it comes to buying property, a slowdown in the market can bring about significant reductions in price, especially if the owner is in a position where they need to sell. In some cases, these properties will be put to auction.

This in turn can open opportunities for UHNWIs and HNWIs to acquire assets for a reduced price or that might previously have been out of reach, but to do so, they require quick access to financing. And this is where bridging loans come in.

Bridging loans can also be used for those who might find themselves in a position of having to sell simply because an existing loan agreement has come to an end. Again, time is often of the essence in these situations.

We also see bridging finance being used to unlock equity from a property that is taking longer to sell than expected, allowing investors more time to sell a finished project and redeploy the equity into other projects and properties – we have a nice case study on this further down.

If the stats are to be believed, the UK property market is hotting up. But as we know, you can’t just rely on the numbers. But with bridging finance, buyers and sellers can always maximise the opportunities in front of them, even if the market suddenly cools.

- Mike Jones – Chief Sales Officer

A recent survey found that 22% of UHNWIs plan to purchase a home this year, with 19% of HNWIs doing the same. This should come as no surprise as prime property values tend to appreciate in the mid to long-term.

This presents an opportunity for developers, with many looking for ways to make their assets work harder for them. One such way is to carry out alterations to enhance the property, either through renovation or adding new facilities, spaces or features.

This can include:

1. Sustainability-aligned improvements
2. Upgraded kitchens and bathrooms
3. Landscaping enhancements
4. Tech features
5. Home office or meeting spaces
6. Entertainment-focused features
7. Adding recreational spaces
8. Luxury parking units
9. Security and access control
10. Improved façade

Learn more about how we secured the loan for the property developer here.

Enjoy these recommendations from Tenn Chief Operating Officer, Karen Dowie .

1. This week I’ve been reading It Starts With Us, the hotly anticipated sequel to Colleen Hoover’s smash hit, It Ends With Us. This time, it tells the story from the side of Atlas and shares what comes next for him and Lilly. Get it here.
2. Sticking with Colleen Hoover, I made it to the cinema to watch It Ends With Us, undoubtedly the best movie of the summer. A film is never as good as a book, but this comes very close. 
3. As a born and bred Mancunian, I couldn’t help but get swept up in Oasis mania this last week and have been working my way through all of the band’s albums in chronological order.

Before you go...

If you haven’t already, please do follow us on LinkedIn and if you’d like to hear more from me, connect with me directly, Michael Jones .