Kuflink readies for property market recovery
After a prolonged dip, the UK property market is showing signs of new growth again, and property lenders such as Kuflink are well placed to take advantage of the new opportunities in this space.
According to recent data from Rightmove, agreed property sales were up by 16 per cent in the first six weeks of 2024, as stabilising interest rates encouraged more home buying. But Kuflink’s chief operating officer Paul Auger (pictured) has noticed a few other key signs of a property market recovery.
“We are seeing more interest on enquiries for development loans,” says Auger.
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“The market is very buoyant at the moment. The expectation is for interest rates to reduce over the coming months and years, and this is driving the market even more than usual.”
Another indicator of recovery is demand for land purchases. Auger says that Kuflink has seen an increase in enquiries from developers seeking to buy land lately, which suggests that they are planning new builds. However, as a business Kuflink does not have much appetite to fund land purchases at the moment.
Instead, Kuflink is focused on sourcing the most attractive property loans through its network of trusted finance brokers, and giving its investors more choice than ever before in anticipation of a property market recovery.
“Activity from brokers is very strong, as with residential mortgages, customers using a broker to source their funding requirements are given far more choice than just approaching numerous lenders themselves,” says Auger.
“Furthermore, property prices seem to be holding steady. It was anticipated there could be a drop in property prices, but this has not really happened. Although we have seen a softening in property prices, we have not seen a drop as some predicted.
“As always, the market is driven by the lack of supply.”
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There is certainly demand for more housebuilding activity, but the challenge for property developers is accessing the funding that they need to start new projects. Fortunately, Kuflink has many engaged retail investors who are seeking to beat inflation and achieve higher investment returns compared to traditional savings products, by financing property loans across the UK.
Auger believes the property market will only grow as the year progresses, and Kuflink is ready to meet this demand and help its investors benefit from the opportunities in UK property.
“My personal view is that we will not see massive property price increases this year, but we will see confidence in the market strengthening and consolidating, giving everyone more confidence in the market,” predicts Auger.
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“In a market where interest rates are dropping or the expectation is that they will, this encourages more activity, giving our borrowers more options to repay their loan with us, either via sale or refinance.”
To date Kuflink has invested more than £315m in UK-based property developers, with zero investor losses. Whatever the property market has in store, Kuflink is ready and able to play its role as an active, risk-aware lender.
