A Boom in Property Development: Follow The Money

There is an abundance of information being thrown around in the real estate industry, all trying to identify the opportunities right now. Wether the industry is about to boom in property development and sales or on the contrary, crash? In this blog we will looking into some of these trends and how you can take advantage of them.

There is an abundance of information being thrown around in the real estate industry, all trying to identify the opportunities right now. Whether the industry is about to boom in property development and sales or on the contrary, crash? In this blog we will looking into some of these trends and how you can take advantage of them.

The Money

Three big institutional players are seeing the build-to-rent sector as a feasible business model:

Reasons behind this aren’t fully known, but we can take a good guess. As we are (hopefully) coming to the end of the pandemic we can agree that commercial property is a less certain asset with an increase of working from home and e-commerce. However, it is becoming increasingly prevalent that investors are looking to turn these commercial buildings; closed down shops, warehouses etc. into residential properties.

With bigger companies moving in this direction it makes sense to follow the money. Pressures that have led to companies entering residential development apply to the average investor too. It makes sense to avoid inflation, retain capital and make use of the many unused commercial buildings.

Planning Law

From August 1st you will no longer require full planning permission to change the use from commercial to residential. You will no longer need planning permission in most cases. Although, an application will still need to be made.

As a result, in the near future we may begin to see more commercial buildings become residential. If you have been thinking about getting into property development, now is a good chance to get involved. There is potential to make a fortune, quickly.

Here at Doorsteps we would love to see more commercial buildings converted into residential property. We have many unique properties on our website and are excited about the opportunity for more in the near future.

Taxes on Developers

Developers with profits of over £25,000,000 per annum face a new tax to help subsidise the removal of unsafe cladding from existing buildings. This tax isn’t going to affect the average developer or investor. However it is important as it shows the prospects of what the government predicts. The government is aware of this post-pandemic growth within this sector, meaning we all should be aware too.

The government is aware of the development boom, therefore are going to get a cut. Regardless of wether this tax lasts beyond its particular purpose, similar will take its place. We take this as a sign of government confidence in the boom in property development, accordingly we should too.

We believe that in the near future lots of commercial-residential property will be on the market and we can’t wait to sell it for you! Living inner- city or in a town may be changing for the better.

What do you think? Will you take follow the money?

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