Bruton Knowles’ National Valuation Team is seeing an increase in client enquiries resulting from the recent volatility following the Government’s tax-cutting mini-budget which caused Sterling to slide.
This comes amidst news that the UK economy shrank rather than flatlined in August, which is yet another sign of these unpredictable times, indicating the economy is in for a rocky ride over the months ahead.
Experts at Bruton Knowles – a leading independent chartered surveying firm – have been on hand to give careful and considered advice to clients as they seek to secure loans before any further interest rate hikes. Putting these sorts of deals in place early is an important move, as Ian Pitt, Partner and Head of Bruton Knowles’ National Valuation Team, explains:
“This is very much a watch this space situation. It’s difficult to make any professional judgements at a time when the situation is evolving so quickly. That said, we do believe in the short-term, tying in any outstanding financial commitments as soon as possible will be key for our clients.
“This will help them maintain some sort of equilibrium during this period of uncertainty. In addition, it will also ensure their project pipelines continue to progress, something that is more important now than ever before, given recent supply chain disruptions.
“Over the longer-term, we envisage that this perfect economic storm – caused by political uncertainty, the crashing Pound causing further inflation and exacerbating the cost-of-living crisis, Ukraine, Covid and Brexit – has the potential to bring property markets to a standstill. Interventions must strike the right balance to instil confidence across markets and the media.
“The challenge for the Government over the coming weeks will be whether to stick or twist on its proposals, particularly in light of the Bank of England’s temporary bond-buying interventions to stabilise investments and pension schemes.
“So far, ministers seem relatively steadfast in the approach, maintaining that reductions in public spending are not an option to balance the books, despite the huge cash injection to help people and businesses manage their spiralling energy bills.
“Interestingly, and notwithstanding early pressure from the International Monetary Fund for Government to reflect on the measures announced, it has, in recent days, acknowledged that the mini-budget will eventually boost Britain’s economic performance in comparison to other G7 countries.
“The downside, of course, is that Government’s interventions are contributing to ever-present inflationary pressures. Perhaps this is the lesser of two evils, and as a necessary adverse reaction to offset some of the bigger economic challenges the country is currently grappling with.
“Nonetheless, the pausing or withdrawal of some financial deals in response to rising inflation is a concern. Finding the right offer at present is no doubt proving more challenging, but we would advise our clients to keep talking to their lenders as the marketplace evolves.
“Every day there is a new development which is impacting on market sentiment. Although this continues to cause some unease, it is hoped the bringing forwards of a more detailed analysis by fiscal watchdog, the Office for Budget Responsibility, will stabilise the situation.
“All eyes will be on this independent assessment, now due on 31st October, which many hope will demonstrate the extent to which Government’s support package will maintain the long-term competitiveness of UK PLC.”
Bruton Knowles offers a one-stop-shop for clients, with its four National Teams - Valuation, Commercial, Utilities & Infrastructure and Building Consultancy - providing a point of contact to deliver an entire project to the exacting standards required. It works on behalf of a significant number of public and private sector organisations, on both a retained and a project basis, and is seen as a trusted partner in delivering high-quality surveying advice.
Bruton Knowles has extensive expertise and in-depth market knowledge of local and national property markets throughout the UK. Using its team of motivated resourceful surveyors, and methodologies approved by the Royal Institution of Chartered Surveyors (RICS), the firm provides the best commercial property advice. www.brutonknowles.co.uk.