deVere Group, one of the world’s largest independent financial advisory organisations, has announced it is pulling all UK property investment projects amid ‘heightening economic upheaval.’
The group said, with immediate effect, it will temporarily close its property investment division as inflation fears grow.
According to the firm, the Bank of England will have to continue to hike interest rates more aggressively to combat rising prices.
”The UK’s bond and currency markets have been highly volatile since Chancellor Kwasi Kwarteng announced his mini-budget last Friday. The yield on the UK 10-year gilt soared to levels not seen since 2008, while the pound plummeted to an all-time low against the U.S. dollar,” the company said.
James Green, deVere Group Investment Director, commented: “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.”
Nigel Green, the CEO and founder of deVere Group, said: “Bank of England’s chief economist has indicated that interest rates could rise sharply imminently.
“The markets are already pricing in 5.8% by next March. But I would not be surprised if interest rates reach above 7% in the spring.
“Understandably, lenders are suspending mortgage offers and, in turn, we’re now suspending our property investment division.”
He continued: “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 have all reacted phenomenally negatively to their plans as the pull away from UK plc gathers momentum.”
James Green concluded: “Should you have any concerns on existing mortgage and protection arrangements, please feel free to contact us and we will do our best to help or introduce you to dedicated strategic partners where necessary.”