The restriction of movement has stopped people viewing and moving property. It will also put a stop on landlords being able to evict non-paying tenants for at least the next three months. In addition, the chancellor of the exchequer announced that mortgage lenders should work with landlords, as well as other homeowners, to allow for payments to be deferred in the event of cash flow problems. In turn, landlords would then be able to defer payments from those tenants who have been financially hardest hit by the current crisis. However, it has been made clear that any late repayments or mortgage holidays should be agreed in advance by all parties. Given these measures, we expect to see a significant drop in rents from tenants, and while these will be repaid over time, going forward the lower economic activity will likely result in slower growth in rental yields over the next year. However, the continued shortage of supply in the rental market space should provide some support for the sector.
It is our view that the bulk of any UK property lending in 2020 is likely to remain to be re-mortgages, where Nedbank Private Wealth can continue to help those clients who have found high street banks to be unwilling to look at their personal financial situation in its entirety.
Our balance sheet remains strong and, as in the past, we can continue to lend even if economic activity remains challenging. We have rapidly adapted our working model and procedures in light of the lockdown, and continue to support homebuyers and re-mortgagors, wherever possible.
In addition, we have also had a number of discussions around the opportunities for investment-backed lending. This is where we can help clients release capital for a number of reasons, such as covering short-term costs or making tax-efficient gifts, without being forced to sell their investments.
While the current conversation will focus on the length of the lockdown and what any ‘exit strategy’ might look like, there are also questions being raised as to how much this will fundamentally change our approach to life. Businesses around the country have enabled millions of employees to work from home, and some employees will want to be able to continue to do so, if only for part of the week. However, we can see businesses actively promoting this – why would a business want to pay for office space that could be paid for by the employee? It’s too soon to speculate, but a shift in how people work would have long-term consequences for cities, commuting and conurbations, and may well change the way we work as fundamentally as the introduction of the railway did in the Victorian era.
On Sunday night, the Queen’s message to the nation stated that future gatherings of friends and family will happen, but that for now we need to pursue life with quiet, good-humoured resolve. So until the better times return, the conversations can continue in that pragmatic spirit and, while we may not be physically visiting clients, or meeting our network of property professionals during the lockdown, we are very happy to have a call – either over the phone or via a video link – and help you understand how Nedbank Private Wealth can assist you during the current market uncertainty.
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Clients of Nedbank Private Wealth can get in touch with their private banker directly to understand how we are helping clients during the current pandemic, or call +44 (0)1624 645000 to speak to our client services team.
If you would like to find out more about how we can help clients borrow against property or investments, please contact us on the same number as above, or complete a form using the links towards the end of the page.
Your home may be at risk if you do not keep up-to-date with your payments on your mortgage or any other loan secured against it.
Colin joined Nedbank Private Wealth’s London office in 2010 after 15 years with Barclays, working within its retail, commercial and wealth management divisions. He acts as a trusted adviser to a select group of high-net-worth clients, which includes private individuals, professional intermediaries, companies and trusts. Colin provides his clients with a tailored and holistic private banking service, offering integrated banking, lending, investment management and fiduciary services.
He is a Chartered Wealth Manager and a Chartered Fellow of the Chartered Institute for Securities & Investment.
Private Banker
Colin joined Nedbank Private Wealth’s London office in 2010 after 15 years with Barclays, working within its retail, commercial and wealth management divisions. He acts as a trusted adviser to a select group of high-net-worth clients, which includes private individuals, professional intermediaries, companies and trusts. Colin provides his clients with a tailored and holistic private banking service, offering integrated banking, lending, investment management and fiduciary services.
He is a Chartered Wealth Manager and a Chartered Fellow of the Chartered Institute for Securities & Investment.
+44 (0)20 7002 3604
While financial markets have been making the headlines for the level of activity – a record level in many instances, as well as the sharp drop in values – the coronavirus pandemic is also having a significant effect on property markets. Our focus is on the UK property market, and particularly the residential sector.
.aa93a58c-2957-4922-aaff-4a3098b32d70 { fill: #212b36; }Have you thought about how you might access short-term capital through borrowing without affecting your longer-term financial goals?
.aa93a58c-2957-4922-aaff-4a3098b32d70 { fill: #212b36; }If you are interested in becoming a client, please complete the form via the ‘become a client’ button below. Alternatively, if you are already a client, or if you have a question about how we help clients in particular circumstances, please use the ‘contact us’ button.
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