Financial advisory group deVere has pulled all UK property investment projects amid growing fears of further interest rate hikes.
deVere Group, which has $12 billion under advisement, will temporarily close its property investment division with immediate effect.
James Green, investment director at deVere Group, says: “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.”
The news comes as the International Monetary Fund publicly spoke of Britain’s intensifying economic upheaval.
Bank of England’s chief economist has also indicated that interest rates could rise sharply imminently and Nigel Green, CEO and founder of deVere Group, said he would “not be surprised if interest rates reach above 7% in the Spring”.
Green said: “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. The Chancellor and Prime Minister 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.”
