Bridging lenders grow in confidence on economic outlook – ASTL

Over 57 per cent of respondents said they were confident about the long-term future for the UK economy compared to 37 per cent of those who were surveyed in March last year, according to research from the Association of Short Term Lenders (ASTL).

Three quarters of those surveyed said that they expect their business volumes to grow in the next six months, representing a small drop of three per cent on last year.

In future, there is more caution about the outlook for the overall bridging market, with nearly 29 per cent of respondents expecting it to shrink, compared to just under four per cent last March.

Further, lender expectations for property prices are gloomier still, with more than 70 per cent preparing for prices to decrease in the next six months.

Overall, positivity among members of the ASTL is up on this time last year and is higher than it has been since April 2016, which was before the EU referendum.

Benson Hersch, CEO at the ASTL (pictured), said that the level of confidence shared by members of the ASTL is reassuring.

He added: “This is not blind positivity as the survey reveals lenders are realistic in their expectations for house prices and the growth of the bridging market, but three quarters still expect their business volumes to grow in the next six months.

“This indicates that bridging lenders are well prepared for the environment ahead and are confident they have the right processes and personnel in place to ride out the storm and be well placed to benefit from future economic growth.”