As much as we are loathe to continue to mention the pandemic, we are certainly still seeing the affects, and very much so in terms of the types of developments taking place and the willingless from lenders to lend in certain markets.
When it comes to financing regeneration projects, we are certainly seeing a growing interest in revitalising and regenerating older or neglected areas, which may create opportunities for regeneration projects. This is particularly the case in urban areas.
We are all seeing retail shift out of city centres and especially due to, and since, covid. The shift towards online shopping is naturally causing redundant space in urban centres and some towns are repurposing these empty units into multi-purpose sites, often combining residential, office, retail and other services such as leisure and hospitality.
Development outside of city centres and high streets is a growing trend in many regions, driven by factors such as remote work, suburban expansion, and a desire for more space and green areas. This trend can present financing opportunities in suburban and outlying areas.
The balance between residential and retail projects depends on market demand and the specific goals of a given area. In some regions, there may be a shift towards more residential development due to changing demographics and consumer behaviour.
The future of finance for regeneration projects may be influenced by government policies, environmental considerations, and social factors. There could be increased emphasis on sustainable and green development, as well as community engagement and inclusivity in regeneration projects.
We continue to see lenders tending to lean towards favouring lending in the owner-occupied, manufacturing, industrial and white coat sectors. Retail and leisure are two sectors that are considered less safe by some lenders, but there are a number of lenders who still have good appetite for this space.
At Forecast Finance we continue to see good demand for residential and commercial projects in both the owner occupation and investment sectors in both urban and more remote areas. Interest rates continue to be an area of concern across all sectors, and a cautious outlook is inevitable.
If you require any further information on this topic, please contact Paul Atkinson at Forecast Finance.
