Rumour has it that a few beers were had too, but then I couldn't possibly comment.
As you can imagine, the possibility of Brexit was an underlying topic for discussion but, by far the biggest, was the level of residential stamp duty at the higher end of the market. There's no doubt that the punitive stamp duty rate for high-net-worth individuals (HNWI) and ultra high-net-worth individuals is causing a lot of concern globally.
Many feel like the door has been slammed firmly shut in their faces – and the worry is the impact this will have on the economy in the medium to long term.
If wealth creates wealth then, as an economy, we're hardly making ourselves attractive to the internationally mobile or HNWIs.
Understandably, concerns were raised when mid-MIPIM, Chancellor George Osborne announced the new slice system for commercial property – once again hitting larger property investors. Oh well, I'm sure, ahem, the government knows what it’s doing.
On a more positive note, and putting aside what happens in the months and years ahead, the market is going off the Richter scale.
Everybody I spoke to at MIPIM said they’d never known the specialist property finance sector to be busier. Development finance continues to lead the charge as investors, especially small and medium-sized developers, seek to monetise the enduring lack of supply.
This investor appetite was seen in February, when we had our biggest ever month for Agreements in Principle, a pretty fair barometer of demand. It will be interesting to see what happens to demand once the stamp duty surcharge on buy-to-let takes effect in a fortnight or so.
But it’s my firm belief that, whatever the government throws at the UK property market, savvy investors will always find a way of making a decent return.
Attributed to Mark Posniak, Managing Director of Dragonfly Property Finance
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