Which property sectors are attracting developers?

Growing numbers of developers are being attracted into sectors such as retail and office, and increasingly considering the sustainability of their projects, according to Tim Lucas from Cambridge & Counties Bank.

Lucas (pictured), who is the bank’s recently appointed head of product & proposition, believes this will prove to be a busy, but cautiously optimistic 12 months for the industry.

“2024 is likely to remain a difficult year though falling inflation rates should help confidence levels,” he told Mortgage Introducer.  “The UK has certainly been impacted by both domestic and international challenges, including high inflation and a more uncertain business environment.

“We have seen many SMEs and professional investors very aware of these challenges but attuned to opportunities too. The UK, I’m sure, will continue to grow and offer good opportunities to property investors, particularly in markets such as logistics, industrial, warehousing and refurbishments & redevelopments.

“We are seeing more interest in and consideration of sustainability factors, and reduced prices are attracting developers into sectors such as retail and office. So, I expect a busy year overall but one with cautious optimism.”

What effect will reduced inflation have on the property market?

Lucas anticipates that reduced inflation may help encourage fresh business.

“Given the bank’s specialist market proposition and product suite we have been - and remain - well positioned to support with dedicated funding for often complex, sophisticated real estate projects,” he said.

“We hope that our particular proposition remains front and centre to the brokers we work with, and that we grow the volume of business we do with them in 2024. The ones we deal with know their markets, customers, and the sectors incredibly well.”

Cambridge & Counties Bank’s relationship-based approach to customers and mortgage brokers is key, suggests Lucas.

“Many financial institutions will talk about the strengths of their customer-centric business model, but it really is the basis for all that the bank does,” he noted. “We would argue results in the strong business growth the bank has seen, high customer satisfaction scores and repeat business, in addition, our manually underwritten products, allow us to remain a high touch bank while still providing an efficient journey for customers and brokers.

“Additionally, we are very much focussed on driving good environmental, social and governance standards, with this being something we are hoping to build upon in the coming months. We are now B Corp Certified, which does distinguish us from many competitors.”

Read more: Cambridge & Counties Bank appoints new chief commercial officer

What does it take to be successful in financial services?

Lucas entered the profession via HSBC’s graduate scheme, gradually moving into product management and looking after retail current accounts and overdrafts. He is clearly relishing the opportunity that his role as the bank’s first head of property and proposition offers him.

“The opportunity to set up and grow a new department, while also supporting customers and the bank itself to grow, was really appealing,” he said. “Product management can mean different things for different organisations, but for me it’s about bringing teams together to make a positive impact on the products we offer and the journeys within those.

“I’ve focussed a lot on improving new and existing customer journeys and launching innovative new products. The aim is to bring that experience to help the bank with its long-term growth strategy as we continue to grow our customer base.

“There was already lots of great work happening when I joined so I’m looking forward to getting my sleeves rolled up and making things even better for our brokers and customers.”

Lucas says that his time in financial services has shown him not to underestimate the power of the industry network – and the importance of being genuine in the way that you relate to the people you work with, and the people you serve.

“I’ve learnt that by bringing my true self to work every day that I’ve been able to build some amazing working relations and ultimately friendships with people internal and external to my organisation,” he shared. “This extends to customers as well.

“It’s always great to hear the good news stories from customers where we’ve been able to help them with various things. I think most people are looking for trusted and authentic relationships with everyone around them and I don’t think you can do this without bringing yourself to work every day.”