Hilltop Credit Partners, a UK-based specialist development funding partner, has secured investment from Metropolitan Real Estate, the global real estate multi-manager platform. As part of this, Hilltop will target to deploy up to £300 million over the next three years to finance the construction of over 1,000 new residential units across the UK, with a focus on affordable regional markets with strong supply-demand fundamentals. The investment provides Hilltop with an immediate opportunity to grow its existing UK residential development finance platform. An investment of this type is critical to achieving the UK government’s target of delivering 300,000 new homes per year. “I’m delighted to announce this partnership, which further establishes Hilltop as a leading player in the UK development lending market. Working with Metropolitan Real Estate will bring together our collective experience in real estate and credit to support proven housebuilders in the UK, and to promote greater housing supply. This partnership is a validation and recognition of our work so far, and we look forward to growing our lending portfolio across Britain this year,” said Paul Oberschneider, Founder and CEO of Hilltop Credit Partners. Hilltop believes that UK residential development lending has fallen up to 40% since 2008, as high-street banks have withdrawn from the market due to new regulatory capital requirements and the impact of Covid-19. The UK could therefore face a funding gap of c. £200 billion that will need to be covered over the next decade in order to achieve the government’s housebuilding targets. Hilltop is backed by global real estate investment firm, Round Hill Capital, and the firms’ combined expertise, industry knowledge and access to capital has facilitated the construction of 250 residential units across the UK to date. The partnership with Metropolitan brings further institutional validation of Hilltop’s strategy and track record. Metropolitan committed c. £60 million in 2021 to purchase a portfolio of existing development loans across five regions and to continue funding the active pipeline. This commitment also demonstrates the strong appetite among institutional investors for the attractive risk-adjusted returns offered by residential real estate credit strategies. Despite the challenging economic backdrop in 2020, UK residential property prices rose at their fastest rate in six years, as strong pent-up demand coincided with a slowdown in the supply of new housing, with more affordable regions outside of London showing the strongest performance.

Homes are selling quickly at the new gated ‘Bridgford Place’ complex in West Bridgford, and interested buyers are encouraged to register interest with the stamp duty holiday extension and introduction of the 5% deposit mortgage scheme. Comprising a total of 30 one and two-bed apartments, 75% of which were sold by selling agents FHP Living by practical completion of the development, Bridgford Place by Buildwell Developments offers modern, luxury and eco-friendly living in the very heart of West Bridgford town centre, just a stone’s throw from Central Avenue. Following Chancellor Rishi Sunak’s announcement of the 5% deposit mortgage scheme and stamp duty holiday extension up until the end of June for properties up to the value of £500,000, and the end of September for homes up to the value of £250,000, interested buyers are encouraged to act quickly to snap up one of the six remaining apartments in the heart of West Bridgford. Each of the last remaining apartments offer a large open plan living space, en-suite shower room, family bathroom, zoned underfloor heating and allocated parking space on-site or across the road. The remaining apartments are located on the ground, first and top floor of the three-storey scheme, with prices ranging from £222,500 to £265,000. All homes have been finished with a light, contemporary design with high spec fixtures and fittings including German kitchens, Bosch cooking appliances, integrated dishwasher, washer dryer and fridge freezer, quartz worktops, luxury bathrooms with Roca sanitaryware and Grohe showers, Karndean flooring and 80/20 wool twist carpets. Allocated parking is available for certain properties on site, and external parking spaces are available on a rental basis, for apartments without parking. With Central Avenue on its doorstep, Bridgford Place benefits from an array of amenities easily accessible on foot, including parks, bars, restaurants and cafes such as Costa Coffee, Copper, Yumacha, The Botanist, Portello Lounge and Escabeche, and convenient supermarkets for essentials such as the Co-op and  M & S. Just two miles from Nottingham city centre, regular bus services including the 5 Green Line run frequently from Rectory Road through West Bridgford, Trent Bridge, The Meadows, Nottingham City Centre and the Lace Market. Following the COVID-19 pandemic and the latest announcement of plans to gradually ease lockdown restrictions over the coming months, Nottingham has seen an influx of people moving to the city – as many look to relocate from London and other major cities. The chief executive of Invest in Nottingham, among many local experts, puts the rise of people moving from the capital to Nottingham down to the city’s attractive, affordable house prices and lower cost of living*. FHP Living has already seen a 23% increase in enquiries from prospective buyers interested in moving from London to Nottingham this year.

Prospective homebuyers can look to a helpful breakdown of insights from property experts on what the stamp duty holiday extension could mean for them. In Chancellor Rishi Sunak’s latest update in the March budget, the current stamp duty holiday was extended from March 31 until the end of June for homes under £500,000 and until the end of September for homes under the value of £250,000, allowing homebuyers the opportunity to save costs when purchasing a property. Property experts at FHP Living have compiled a list of the main insights for all prospective homebuyers to ensure they are clued up with the facts. “The extension of the stamp duty holiday from its original date of the end of this month until the end of June and September, will allow homebuyers a much larger window in which to progress with their moves and make important decisions. It will mean much more opportunity is available to those looking to get on the property ladder, buy another house or extend their portfolio,” said Steve Parker, director at FHP Living. “In what has been one of the most unprecedented years for many sectors, the stamp duty holiday initiative has been a major factor in allowing the property market to remain buoyant, and many of the developments that we are marketing, where we are based in Nottingham, have provided buyers with fantastic opportunities to save, across a spectrum of price ranges. “As a leading estate agent in Nottingham, we are pleased to see high quality homes continually being built in the area, improving the city’s residential offering for current citizens and the influx of people moving to the area. “It’s very positive news to hear that the stamp duty holiday has been extended, opening up many opportunities for buyers looking at a range of homes we are currently offering – including riverside developments such as Pelham Waterside, The Yacht Club, Trent Bridge Quays and The Waterside Apartments, and other developments within Nottinghamshire including Barton Quarter in Beeston and Hunters Wood in Gedling village.” Here’s what you need to know about the proposed stamp duty holiday extension: Opportunity to save Homebuyers can save as much as £15,000 in tax and homes under the value of £500,000 remain exempt from stamp duty. You will pay nothing on the first £500,000 of your property, but anything over this amount you will need to pay 5% stamp duty tax on for the next £425,000, up to £925,000. Rates are then 10% from £925,001 to £1.5million, and 12% for £1.5million and above, and this applies in England and Northern Ireland. Time to complete If the stamp duty holiday extension deadline had remained at 31 March, you would have needed to complete a sale by this date to benefit from the stamp duty holiday. With the extension until the end of June for homes under the value of £500,000 and the end of September for homes under the value of £250,000 – this will allow plenty of extra time for properties to progress and complete. Easing of restrictions With the government’s COVID-19 exit roadmap announcing the easing of restrictions from March 8, those who have been hesitant to attend viewings that aren’t virtual may find it useful to book in and see properties in person – allowing decisions to be made and things to move along faster, with an extension until the end of June and September. 95% mortgages As well as the stamp duty holiday extension, the government has confirmed a 95% mortgage guarantee scheme in the March budget, which will see 5% deposit mortgages reintroduced, allowing first time buyers a better chance at getting on the property ladder much sooner. This, along with the stamp duty holiday extension, means that the next few months will be an ideal time for prospective homebuyers to press on with their search and registrations of interest in new properties.

Ross Baxter, Managing Director of Saint-Gobain Off-Site Solutions, which comprises Pasquill, Roofspace Solutions, International Timber, Intrastack and Scotframe, said: “The housebuilding and construction industry are an essential part of the UK economy and its resilience has been severely put to the test over the past 12 months. I welcome the Chancellor’s positive announcements, which seek to provide reassurance to manufacturers, suppliers and house builders as well as homebuyers.  “The two-year tax deductible on investments will allow us to drive forward with our plans for continuous improvement, growing both our services and product portfolio. Meanwhile, mortgage guarantees and the extension of the stamp duty holiday until 1 June will keep the market moving and provide continuity of work for everyone in the sector, so we can deliver on the ambition to build back better.”

James Simmonds, head of UHY Hacker Young’s national drinks sector group and partner at its Nottingham office, said: “Sunak has announced that the business rates holiday has been extended to end of June 2021, which is great for the food and drink sector. However, many pubs, bars and restaurants may not be able to open until 21 June under the government’s current roadmap so, while this extension will be welcomed by the industry, it may not relieve many hospitality businesses from rent debt.  “The government also announced the continuation of the reduced VAT rate of 5% until 30 September 2021, along with an interim rate of 12.5% for a further six months to allow the consumer to pay reduced prices at the business’ discretion.  “Restart grants of up to £18,000 for hospitality businesses will also be welcomed – however, this sum is to the rateable value of the business’ property assets so the grant could be as low as £8,000 for smaller premises.   “The continuation of the freeze on alcohol duties for the second consecutive year will hopefully keep the consumer from paying increased prices and incentivise a return to pubs, bars and restaurants post-Covid.    “Additionally, the introduction of a community ownership fund will allow communities across the UK to invest in and protect what matters most to their area, which in many places may well be the local pub or hospitality business – something that could also bring benefits to the industry.”  For more information on UHY Hacker Young, please www.uhy-uk.com or call 0115 959 0900.  

FOLLOWING Rishi Sunak’s spring budget announcement, the stamp duty holiday will now be extended to 30 June 2021 and a 5% mortgage scheme will be re-introduced next month.   Jess Mitchell, office manager at Nottinghamshire estate agent Gascoines, said: “Following the initial government announcement to introduce a stamp duty holiday, the market saw house hunters relieved of costs and induced a mini housing boom as sellers were eager to take advantage and complete transactions in time.  “Rishi Sunak initially set the holiday, which extended to properties under £500,000, to end on 31 March 2021 but has announced the deadline will now be extended to 30 June with the nil-rate then lowered to £250,000 until the end of September. We’re therefore expecting to see a high number of properties listed over the coming weeks and offers placed in very short time periods, from now until September to really make the most of the extension.”  A government-backed 5% mortgage scheme will also be re-introduced to help current homeowners as well as first-time buyers looking to purchase a house for up to £600,000. The initiate will be available from April 2021 and has been designed to help “generation rent” become “generation buy”.   Jess added: “With the uncertainty surrounding Covid-19 over the last 12 months, the property market witnessed lenders withdrawing their 95% mortgage offerings and demanding deposits of 10 – 15%, with much higher interest rates.  “We’re starting to see these rates dropping back to normal levels again and with the new government scheme, we hope to see more first-time buyers coming through the door and getting their foot onto the property ladder.  “My advice would be to always aim for higher than your deposit and if possible, have this ready – along with a mortgage in principle – before you start looking for a house and seek advice from your local estate agents or mortgage advisors.”  To find out more about Gascoines or speak to one of the local property experts, please visit www.gascoines.co or call 01636 813245. For rentals and lettings, the property management team are also available to deal with any enquiries and urgent maintenance.   Alternatively, join the conversation on social media @gascoines. 

Property investment platform Brickowner has launched a secondary market for its property investments, allowing investors to buy and sell shares online.        The marketplace will allow Brickowner investors to list shares in investments funded on the Brickowner platform for sale before the end of the investment term so that other Brickowner users can buy them.   While the secondary market will initially feature only shares in investments funded on the Brickowner platform, the firm aims to make the marketplace available to boutique property fund and asset managers as a way of providing liquidity for their own investments.  Fred Bristol, Brickowner’s co-founder and CEO, said: “Brickowner is proud and excited to be launching its pioneering secondary market, offering investors the opportunity to buy and sell their property investments online.  “Asset managers and developers are often only able to offer investments for fixed terms, with no possibility of redemption until the term ends. Brickowner changes this, making it possible for their investments to have the opportunity for liquidity. We see this as a great partnership opportunity for many managers and are already speaking to a number of funds, asset managers and developers about its exciting potential.” “The pandemic has accelerated the adoption of online technologies in all sorts of fields, not least investing,” Bristol continued. “The ability to trade property investments simply and affordably on your phone or laptop is an example of how our industry is adapting to the seismic changes we are all seeing. We believe our secondary market puts Brickowner at the forefront of that innovation.”  Visit www.brickowner.com.  

The campaign for the government to ditch reverse charge VAT is mounting with the Federation of Master Builders, FMB, claiming two-thirds of SMEs believing it will damage cash flow. Scottish National Party MP Kirsten Oswald has already tabled an early day motion calling for the controversial new regime to be dropped. FMB chief executive Brian Berry said: “This is a damaging policy being introduced at the worst possible time for builders. By removing the flow of VAT money between businesses in the construction supply chain, four in ten builders say this will have a ‘significant or moderate’ impact on their cash flow.” The new regime was to have gone live in October 2019 but was deferred to 1st March 2021 following industry lobbying. The new policy means no-one in the supply chain can invoice for VAT and pass the money on later to the tax office. Build UK has told the government that many SMEs are fighting to consolidate their cash flow following the pandemic and the effects of leaving the EU. It has set up a Twitter hashtag #StopReverseVAT to channel responses from affected construction companies. The organisation calculates that for companies that submit quarterly VAT returns they will need an extra five per cent of annual sales to compensate for the loss of cash flow. Firms who submit monthly returns will need an extra three per cent of annual sales. “The introduction of the charge at this time will put jobs and businesses at risk and may result in companies that survived the Covid-19 outbreak and the UK’s withdrawal from the EU being undone by this additional burden,” said Build UK deputy chief executive Jo Fautley. Brokers Hank Zarihs Associates said that property development lenders would be there to support SMEs experiencing cash flow hardship. Licensing builders holds key to tackling fraud The new policy is being introduced to tackle missing trader scams where fraudsters import goods VAT-free from other countries and then sell to domestic buyers charging them VAT. City Lofts London director Deepak Sing Udassi believes a mandatory licensing scheme for the construction industry would be a better means for tackling the issue. “Due to the little to no regulation in the industry, rogue traders are able to operate freely, to the detriment of consumers and reputable businesses like mine. “Licensing would also drive-up standards, professionalism and the reputation of the industry, which is clearly not well regarded across Whitehall as demonstrated by this punitive policy.” Elland and Steel Structures Ltd managing director Mark Denham said: “If this initiative is applied from 1t March, it will be the ‘final nail in the coffin’ for many sub-contractors both big and small. “Reverse VAT penalises good honest companies that have continually paid their VAT on time.” Build UK is calling on all firms in the supply chain to write to their MPs to request support for the forthcoming early day motion.