Global independent financial advisory organisation deVere Group has temporarily closed its UK property investment division amid inflation fears and possible further intervention by the Bank of England (BoE).
The news comes after the IMF came out publicly for the first time about the latest economic developments in the UK, saying it is ‘closely monitoring’ them and is engaged with the authorities.
deVere is also concerned that the Bank of England may continue to hike interest rates more aggressively to combat rising prices.
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.’
Nigel Green, CEO and founder of deVere Group, added: ‘The 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. A result of the mini budget is that mortgage prices are set to increase, and borrowers are to have less options.’
deVere Group has more than 70 offices across the world, over 80,000 clients and $12 bn (€12.3 bn) under advisement.