Property Development Has New Opportunity

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While consumer confidence is returning in the UK many companies can think about expansion. It has been a difficult few years for most businesses. There are lasting consequences and some will continue to be felt in the property market. On the positive side, it is providing new opportunities for property developers because there is an ever increasing demand for rental property. If there are tenants waiting for property, developers can be more confident about their plans to build new property or convert old property into modern apartments.

The recession can be laid at the door of a simple factor; easy credit. As property prices grew year on year at the beginning of the last decade financial institutions were ever more relaxed about lending money. They often did it to applicants who if their status had been checked a little more closely would have been seen as severe risks. They simply had not the means to pay back their borrowing if everything went wrong; and it did.

property-development

Rental Growth

The result was a crash and minimal demand for property in the new economic circumstances. One consequence has been an increase in demand for rental property because there are sections of the population who are unable to buy at present. They include many young people who do not have the deposit to put down under the stricter application criteria that has resulted from the recent financial crisis. Also facing problems are the low paid who cannot afford property as prices rise once more and also those whose credit history makes it extremely unlikely that lenders would approve their applications.

Legal requirements

There is more to property development than simply having the money to invest. Developers that intend to rent their properties out have legal responsibilities to their tenants. They have to ensure that their buildings fulfil those obligations before planning and building approval can be granted. One obvious factor is fire prevention, whether the building is residential or commercial.

Fire doors

Fire resistant doors from an established manufacturer like http://www.safedoors.co.uk have to be installed at strategic points within any building which provides shared public access. It is essential that if fire starts it can be contained within the area it began until all the occupants of the building can escape. That means getting fire resistant doors that can hold back any fire for a period of at least 30 minutes so that it cannot spread. Quality manufacturers make to a nationally agreed standard and developers who want to ensure that they will not fall short in their legal responsibility are certainly advised to buy the best.

Many developers have suffered the lean times like everyone else. They now have an opportunity for sustained growth as long as they do the job properly. There seems little likelihood that the demand for rental property will drop in the near future. The country is struggling to reduce the current housing shortage even if there are no financial constraints. There is opportunity and market for those that do the job properly.

 

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