Demand for Bridging Finance has soared during the final quarter of last year according to the latest data released by the Association of Short Term Lenders (ASTL)
These newly revealed figures show a 26% rise in the value of bridging loan written during the final three months of 2016 compared with the previous quarter. Total lending in 2016 reached £2.83bn, up from £2.59bn in the previous year.
These buoyant figures are supported by the ongoing activity in the country’s ever-resilient property market. Despite a recent dip in house price rises, published by the Country’s largest mortgage lender Halifax, the full-year figures continue to show an annual rise of over 5%. With the Government’s intention to build a million new homes by the year 2020, and the chronic lack of supply, there is no reason to believe this position will change throughout 2017.
The turbulence in the Central London ultra-prime market seems to be calming down. Some reports suggest these properties are now back in the sights of international investors as an attractive investment, given the historic stability in that space. However, the recent turbulence has led to an increased interest within the commercial property arena, as investors search for higher yields and long term asset performance.
As always, we are maintaining a watchful optimism. There are a number of economic risks that could challenge the recent positive market signals, think Brexit and Trump; however with the demand for housing remaining as strong as ever, and the sluggish Government response to actually building more homes; we do not expect any major changes to the market in the short to mid-term.
For more information, or to apply for a bridging loan, contact us.
This article was written by Matthew Dailly, Managing Director of Tiger Financial.
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