INTERVIEW
MARKET
“In bridging, speed is of the essence” Head of sales at specialist investor and lender bullish about market, despite headwinds
C
hris Timms, head of sales for the Midlands and North at Octopus Real Estate – property, is in a comfortable place. Despite strong economic headwinds in the shape of high inflation, which most recently edged past nine per cent, and an increasing higher-rate environment that’s making lending inherently more expensive, Timms calmly explained that there were still plenty of investment opportunities to be had in the bridging and buy-to-let fields. “Property prices are continuing to boom, and I think there is still going to be a very healthy market. Personally, I think that’s not looking to change anytime soon,” he said. “There is still significant wealth, and people who have access to money now are thinking about the best way to invest their cash, whether it’s in a long-term ISA or in other investment products.” The housing market has indeed proved to be resilient – up to now. According to the latest figures issued by HM Land Registry (HMLR), average house prices across the UK increased by 12.4 per cent year-on-year to April 2022, despite five consecutive interest rate increases by the Bank of England and the cost-of-living crisis. However, this came with an important caveat, as the figures were for April, before economic conditions began to deteriorate significantly.
14
BRIDGING INTRODUCER JULY 2022
“According to the latest figures issued by HM Land Registry (HMLR), average house prices across the UK increased by 12.4 per cent year-on-year to April 2022, despite five consecutive interest rate increases by the Bank of England and the cost-of-living crisis” Chris Timms Timms acknowledged that fact without downplaying the state of the market. “We’re obviously cautious … we want to make sure that we’re not taking significant risk on any potential falling property price. However, anyone looking to buy will tell you that it is still a very hot seller’s market at the moment, and properties that are listed are often selling before they even go on Rightmove.” Rate-savvy investors were nonetheless trying to stay one step ahead of the volatile market, he went on to add. “People are looking to really capitalize and make quick wins by getting [up to] three projects under their belts. We’re very fortunate because we’re well-priced, so we attract the best quality of borrower. It means that we’re able to be prudent and not take unnecessary risks with our
capital, so the people we lend to are financially very secure and stable, and also generally experienced, and will have a good idea of the transaction they’re getting into.” As a specialist real estate investor and lender, Octopus Real Estate – part of the Octopus Group – offers most types of property finance, having lent more than £5.5 billion in more than 4,000 loans so far, with loans typically ranging from £100,000 to £1m. “We’ve got very deep pockets. We’re very fortunate in that sense,” Timms said. Most of that money is lent from its own investment funds, and its “bread and butter” product, as Timms described it, is bridging. “It’s what we’ve been known for for years – that’s www.sfintroducer.com
