deVere Group Pulls All UK Property Investment Projects

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• deVere Group Pulls All UK Property Investment Projects

04 October 2022

deVere Group will temporarily close its property investment division with immediate effect.

The finance firm’s Investment Director cited the “availability of credit” and a predicted imminent drop in property prices as being to blame, after events following Liz Truss’ government’s “mini-budget” of tax cuts.

James Green, deVere Group Investment Director, said: “We are concerned about the availability of credit and, therefore, an imminent drop in property prices so we are temporarily suspending all property investment projects.

“We understand many clients around the world will be concerned about current mortgages and protection and, as such, we have put together a dedicated team to assist with these enquiries.”

The International Monetary Fund (IMF) released a statement shortly after the fiscal statement, in reaction to the pound’s value plunging to an all-time low against the dollar: $1.035.

In the statement, the IMF urged the government to “reevaluate the tax measures, especially those that benefit high-income earners.”

Trust in UK PLC "Has Hole Blown Through It"

Nigel Green, CEO and Founder of deVere Group, released a statement on the company’s decision “Bank of England’s chief economist has indicated that interest rates could rise sharply imminently.

“The markets are already pricing in 5.8 per cent by next March. But I would not be surprised if interest rates reach above 7 per cent in the spring.

“Understandably, lenders are suspending mortgage offers and, in turn, we’re now suspending our property investment division.

“A result of the mini-budget is that mortgage prices are set to increase, and borrowers are to have less options. The Chancellor and PM Liz Truss have recklessly gambled with the UK economy.

“The pound, gilt market, the stock market, and now the property market all reacted phenomenally negatively to their plans as the pull away from UK plc gathers momentum.”

U-Turn on Higher Tax Rate “Not Enough to Calm Markets”

Nigel also feels that Chancellor Kwasi Kwarteng’s reversal on the scrapping of the 45p rate is not enough to calm financial markets:

“Sterling did regain some ground higher against the dollar and gilt yields fell on the scrapping of the 45p rate announcement, but the pound will remain under pressure and high bond yields remain of serious concern.

“Investors’ trust in UK plc has had a hole blown through it.”

Picture: a photograph of a set of keys on a wooden table. Image Credit: Unsplash

Article written by Ella Tansley | Published 04 October 2022

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