High housing demand increases bridging finance applications
The high demand for housing in the UK has resulted in a greatly increased demand for bridging loans, the highest since 2012, a year on year increase of 123%, according to Benson Hersch, chief executive of the Association of Short Term Lenders.
In the first quarter of 2017 the number of bridging loan applications continued to rise.
Though some of the increases in applications could be bridging finance brokers creating multiple applications from a single borrower, this does not account for all of the increase.
Many experts had predicted there would be a decrease in the housing market following Brexit, but this has not happened. The market could even out, but there are no signs of this happening in the near future.
Though the general election result and Brexit have created economic uncertainty, bridging lenders are highly optimistic that the housing market will continue to be healthy. The Brexit negotiations could last for two years and may eventually have a negative effect on the UK housing market, but Benson Hersch says that presently the negotiations are not affecting the housing market.
Not as many overseas investors are purchasing high end London properties and this has caused a dip in London property prices. Other areas of the country have not seen prices fall.
There is a shortage of houses in many areas and developers are building new properties where they can.
Bridging loan and mortgage lenders expect to have a busy 2017.