Investec: Competition for £1 Million Plus Properties on the Decline

Competition for properties worth £1 million or more has fallen over the last two years, according to research by Investec Specialist Private Bank. End Quote

(1888PressRelease) January 27, 2011 - Competition for properties worth £1 million or more has fallen over the last two years, according to research from October 2010 by Investec Specialist Private Bank ('Investec'). Interviews with estate agents, developers and mortgage brokers operating in this market for the Investec £Million Plus Property Market Barometer (the 'Barometer')1, which tracks market sentiment, reveal that two years ago there were typically eight buyers competing for each property worth £1 million or more, compared to just five today.

Those interviewed say that on average it takes them between one to two months to sell a property worth £1 million or more, and around a quarter say that it takes less than a month to secure a sale. However, almost one in ten says that it currently takes more than four months.

High end estate agents, mortgage brokers and developers claim that the top three obstacles facing sales of million pound plus properties are: a lack of stock, fear of a 'double dip' recession (and the impact this has on buyer confidence levels) and a lack of finance. Indeed, almost half of those surveyed (45%) for Investec's Barometer claim that the availability of credit to purchase million pounds plus properties is either 'poor' or 'very poor'.

Jack Jones of Investec Specialist Private Bank said, "Although there remains a lack of stock for sale, particularly at the upper end of the market, our Barometer shows that competition for £1 million plus properties has fallen over the last two years. Our findings suggest that one of the main reasons for this is the difficulty in securing credit and the inflexibility of lending criteria among some organisations."

Investec recently launched a £Million Plus mortgage targeted at high net worth professionals who are not paid along conventional lines, but rather accrue irregular income such as lump sum bonuses. The new custom-made mortgage offering takes overall income and wealth into account rather than just the value of an individual's property and their regular monthly income.

The £Million Plus mortgage is aimed at the top end of the market, with loans available exclusively to individuals looking to borrow a minimum of £1 million2 with sustainable earnings in excess of £300,000 a year and an established balance sheet in excess of £3 million. Investec says that these individuals typically purchase properties worth in excess of £1.5 million.

The mortgages may be secured against a variety of assets including property, shares, investment holdings and offshore deposits, and are available in a number of currencies. The offering is not limited to UK nationals and includes the purchase and refinance of UK property residence and investment properties.

For further information on Investec Specialist Private Bank mortgages, call Jack Jones on 0207 597 4601.

Your home may be repossessed if you do not keep up repayments on your mortgage.

For further information please contact:
Investec Private Bank
Jack Jones
Sarah Bradbury 020 7597 4789

Citigate Dewe Rogerson
Alistair Kellie 020 7282 2850
Georgiana Varey 020 7282 2806
Katie Pugh 020 7282 2914

Notes to editors:
1.Interviews conducted over the phone with 35 estate agents, mortgage brokers and developers who focus on the £1 million plus property market by CDR Research between 18th and 29th October 2010
2.If a couple, the primary applicant must be earning £300,000 per annum or more

Specialised Banking is a division of Investec Specialist Private Bank (http://www.investecspb.co.uk/). Our Specialised Banking team provides high value custom-built mortgages exclusively to individuals with sustainable earnings in excess of £300,000 a year. Mortgages (http://www.investecmortgages.co.uk/) in excess of £1million can be secured on prime properties in the UK and Europe. Finance is available for purchases, refinance, or raising capital for other investments. Available in a range of currencies, loans can also be secured against a number of assets including property, investment portfolios and offshore deposits. The division's offering is characterised by personal service and innovative facilities tailored to each client's distinctive requirements.

Investec Specialist Private Bank has developed a real affinity with the entrepreneurial class and our experience places us right at the heart of this unique business community. We have created an environment that helps make things happen: propelled by a successful track record and market-leading expertise.

Our areas of specialisation include Structured Property Finance, Banking Services, Specialised Lending, Wealth Management, Trust and Fiduciary services, and Growth & Acquisition Finance.

Investec Specialist Private Bank is a division of Investec Bank plc (Reg. No. 489604) of 2 Gresham Street, London, EC2V 7QP. Authorised and regulated by the Financial Services Authority. A member of the London Stock Exchange.

This press release is issued on behalf of Investec Bank plc. Registered address: 2 Gresham Street, London, EC2V 7QP (Reg No. 489604)

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