The commercial property market could also be set for a big boost as lenders are increasing their appetite and relaxing criteria.
According to Finance 4 Business head of distribution Dave Pinnington (pictured), the development finance sector is already taking off, as emphasised by the raft of new lenders coming in to the market.
“This year will be quite a large boom within the development market itself and you can tell that by the lenders’ appetite,” he told Specialist Lending Solutions.
“There’s a bit of rhetoric about three new lenders – the lenders always go where the opportunities lie.
“When you spot three lenders announcing the fact they are coming in to the market you know that’s where they see the opportunities,” he said.
Pinnington credits much of the growth to a push from both central and local government action.
“There’s a huge push on councils releasing brownfield sites and there’s been an awful lot of SME development which we’ve been able to assist,” he continued.
“It’s a real area in the market we’re concentrating on. Birmingham is developing a bubble outside of London, which is unheard of.
“And there’s an awful lot of development going on around major cities where developers are spotting opportunities to purchase land,” he added.
Pinnington also believes lenders in the wider commercial market are showing greater confidence.
“There’s a lot of confidence on the commercial side as well so lenders are increasing their appetite and relaxing criteria regarding commercial premises,” he said.
“We’ve all suffered in the recession, we all know what it was like, so it’s nice to see that confidence back because businesses took that hit as they were closing left, right and centre.
“That confidence took a while but to see that back to where it is now, that’s great,” he added.