Setting the scene for commercial brokers, investors and developers for 2023 proved a little more unpredictable than we first thought at the tail end of 2022. Base rate rises, the falling pound and growing inflation made us wary of what the next 12 months could hold.
The impact of a volatile economic climate over the past few years has made lenders and borrowers more cautious. But at Hodge, we’ve used the changing landscape to adapt and grow our product offering, developing new ways to support commercial property developers and investors when they need us. We're here well before the first brick is laid and far beyond the last lick of paint.
Our best predictions of the commercial lending landscape for 2023 looked tempestuous. Risky conditions for lenders and borrowers with Bank of England Base Rates expecting to peak at 6%, a sharp rise from the already increased 3-3.5% we were experiencing in the latter months of 2023.
Now, with economists suggesting the base rate won’t rise beyond 4.5% in 2023, the dark clouds appear to be clearing, making way for a calmer lending environment which investors and developers can take advantage of.
We're already pushing forward rapidly, continuing to shape our lending proposition and service to meet the new challenges and opportunities we're seeing this year.
In February we launched a new Mixed Use Finance option designed for experienced property investors looking to invest in semi-commercial properties which mainly comprise of residential assets but also include a commercial element. We’re already receiving a high volume of enquiries and are pleased to be able to offer this additional flexibility to support investors with their growth plans.
On the development finance front, we have recently increased the maximum lending amount per single transaction from £5m to £10m across our suite of development finance products including Development Finance loans and Stretch Senior and our Sales and Refurbishment Bridge options. Our aim is to open up additional opportunities for those brokers and developers who would not have otherwise been able to consider Hodge and we look forward to supporting more developers in building quality new homes across the country.
We’re committed to meeting the varied and evolving needs of our brokers and clients by adapting and tailoring our specialist lending proposition and hope these latest changes will be a welcome addition.
Get in touch to discuss how we can support your property investment and development goals and we look forward to speaking to you and hopefully working with you soon.