Funding the booming Birmingham property development market

While recently there has been much focus on HS2 and the fact this will reduce Birmingham to London travel times to just 49 minutes, there is more to Birmingham than many appreciate. The city is in the midst of an expanding redevelopment programme with HMRC planning a huge regional tax hub and many private operations looking to move away from London. As a consequence, there has been a significant increase in demand for development finance for ground up projects or changing commercial units to apartments.

Securing development finance

Finance 4 Business is an award-winning specialist finance brokerage with intimate knowledge of the Birmingham market. It is vital to negotiate the best possible development finance terms to minimise short, medium and long-term finance costs while maximising long-term profits. While working to an indicative timeline it is also important to inject a degree of flexibility into any development finance arrangements. This ensures that all parties are protected at all times, interest charges are kept to a minimum and funding is released as and when required.

Birmingham business sector

In recent times we have seen the likes of PwC, BBC3 and HMRC relocating significant resources away from London and into Birmingham. This has increased demand for both commercial and residential properties in the city centre which is likely to continue for some time to come. It is also worth noting that Birmingham has one of the highest graduate retention rates in the UK at a staggering 49%. So, as more and more graduates stay in Birmingham, after finishing their education, this creates additional demand for student and young professional accommodation.

It is also worth noting that Birmingham has one of the youngest populations in Europe. Recent figures show that 45% of Birmingham’s population are under the age of 30 which reflects the growing reputation of further education facilities in the region.

Roadmap to success

The opportunity to work with companies such as Finance 4 Business brings together a whole array of different opportunities through the structure of the company. This includes:-

• Calibre Land – sourcing land for developers and assisting with planning applications and off market sales
• Walker Doble – property consultants offering advice on initial development outlines right through to the sale of properties
• Innovation 4 Business – stamp duty land tax specialists ensuring the correct SDLT is paid

These businesses complement the financial arm of the group, Finance 4 Business, able to provide finance for the purchase of land right through to the funding of development costs. As the number of development opportunities within Birmingham continues to grow there is often a need to act quickly but on an informed basis. The continuation of service from the initial land purchase to the raising of development finance ensures a seamless process.

The future of Birmingham

Business attracts business and this is perfectly reflected within the growing Birmingham economy and city centre property market. While there is no doubt that HS2 will inject yet another boost to the region, aside from this project we have already seen the relocation of significant resources from both public and private bodies. The employment market is extremely strong, graduate retention amongst the highest in the UK and there is a general feelgood factor across the Birmingham economy.

Negotiating the best possible terms for development funding, protecting all parties, and also injecting a degree of flexibility is vital. Here at Finance 4 Business there is a seamless flow from the sourcing of land right through to the development stage.

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