Summer 2024 feels a little like the calm after the storm in terms of the General Election now being behind us, but what lies ahead for brokers both near and longer term as far as opportunities are concerned?
Markets hate uncertainty, and whatever your political stance is, the election result is now a known quantity, with the uncertainty removed. This seems to have had a tangibly positive effect on the residential and commercial finance markets, which have been relatively calm since results day.
Looking forward
The incoming administration has confirmed some major items from their manifesto that they will action early in their tenure:
- An energy strategy, especially an uplift in green energy production
- Reforms to the National Planning Policy Framework to “get Britain building again”
- Development of a 10-year infrastructure strategy, run by a revamped government infrastructure body
Beyond a summer of feel-good sports action, business and consumer confidence have, at minimum, stopped heading in the wrong direction. According to commentators, with inflation reduced to more manageable levels and the expectation that the Bank of England will start to reduce rates (albeit slower than initially forecast), both measures are trending higher.
Growth and Expansion
Business confidence translates into planning for growth and expansion, which includes employing additional staff. These actions all add to the economic feel-good factor.
The Royal Institution of Chartered Surveyors (RICS) June UK residential survey returned a score of +20%, the most positive sales sentiment since January 2022.
An active property market will present opportunities for investors as well as residential property buyers and sellers, and the post-election period has been supportive for the future direction of mortgage rates to begin a downward trend in what we have seen from lenders in July.
The way forward is by no means set in stone in any area of commercial finance, but proactive brokers minded to find a solution for what their clients are trying to commercially achieve will add value to their customers and position themselves to be the first port of call to support them moving forward beyond the current period.
So, as you emerge with your clients’ requirements from this stormier pre-election period, there’s opportunity in understanding their commercial objectives and what would be their best outcome, and we believe that there is lender appetite in all commercial finance product areas to support them.
Mark Grant, Managing Director, Fiducia Commercial Network.
August 2024.
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About Fiducia Commercial Network
Fiducia Commercial Network is a commercial finance \’Appointed Representative\’ network created to allow independent firms to provide commercial property finance and trading business finance options to their existing client base and network.
Joining the network provides opportunities for professional brokers to offer a full range of commercial finance solutions by acting as an Appointed Representative (AR) with the full support of the Fiducia Commercial Network team.
The Fiducia Commercial Network membership includes FCA authorisation and reporting, PI insurance, and NACFB membership, plus business, compliance, finance, system, and admin support from a company with over 20 years\’ experience in commercial finance.
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