DeVere shutters UK property investment division as mortgage rate rises loom
Independent financial advisory organisation DeVere is to pull all its property investments in the UK market amid looming interest rate rises.
The group, which advises on around $12bn (£10.7bn) in funds, said today it will temporarily shutter its property investment division as inflation in the UK spirals.
The Bank of England is widely expected to further increase interest rates in a bid to tame rising inflation, which is expected to weigh on mortgage costs and property values.
Group investment director James Green said that bosses at DeVere are “concerned about the availability of credit and, therefore, an imminent drop in property prices.”
“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.”
A spokesperson added that the group is “closely monitoring” the economic climate in the UK and are “engaged with the authorities”.
Next year, CEO and founder Nigel Green said he “would not be surprised if interest rates reach above seven per cent in the spring.
“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.”