I recently saw an interview with property developer Martin Skinner discussing the proposed new landlord rip-off…apologies…tax, which is starting in April next year and the implications of Brexit for the property industry. It was a very encouraging discussion outlining some of the positive aspects of Brexit but at the same time holding a balanced realistic viewpoint. I only mention this as I was holding a discussion with some friends on the impact of Brexit and the new tax regime. My non-property friends who were 'remainers' could only see dark clouds looming, and I for one agree that our wallets will be pinched from the current exchange rate next year. BUT I do see that with change comes growth, albeit long term, and opportunity. We are now seeing genuine opportunities arising from vendors who are being more realistic with their asking prices.

One such opportunity arose very recently in South London. Alex, our in-house analyst, sourced this opportunity from an agent. Our business model is off-market deals only however, we do have relationships with agents all over London who offer us first refusal on any potential developments. This particular deal was from a vendor who was looking to emigrate and wanted to liquidate some of his assets. The property in question was a 4-bed flat valued at over £700,000 but we saw an opportunity to convert this into two units giving a GDV of £1,135,000 with a 24% margin on GDV.