deVere Group, which has US $12bn under advisement, has announced the temporary closure of its UK property investment division as inflation fears suggest the Bank of England will need to hike interest rates more aggressively to combat rising prices.
James Green, deVere Group Investment Director, explains: “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 (IMF) has spoken publicly for the first time about Britain’s intensifying economic spiral.
“We are closely monitoring recent economic developments in the UK and are engaged with the authorities,” said a spokesperson.
Nigel Green, the CEO and founder of deVere Group, says: “Bank of England’s chief economist has indicated that interest rates could rise sharply imminently.
“The markets are already pricing in 5.8 per cent by next March. But I would not be surprised if interest rates reach above 7 per cent 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.
“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.”
Readers with concerns about on existing mortgage and protection arrangements should contact the company.