Results from a survey by the Association of Short Term Lenders (ASTL) shows that uncertainty is very much in control for the bridging market.
And there is an expectation that lenders are likely to leave the market – 57 per cent of respondents said market competition was likely to decrease over the second half of 2020, and just five per cent expected to see a rise in competitors.
When it comes to their own business affairs, 41 per cent of lenders believe turnover will increase over the next six months while the same proportion feel they will see a decline.
As for sentiments towards the wider sector, 41 per cent of bridging lenders expect total turnover to increase over the rest of the year and 36 per cent think it will shrink.
Furthermore, 43 per cent of lenders expect house prices to fall over the next six months, and 24 per cent predict they will see slight growth.
Encouragingly, in the survey conducted during the first two weeks of July, 64 per cent of bridging lenders said they were optimistic about the UK economy as a whole suggesting greater confidence than the 50 per cent who felt the same in June last year.
But overall the ASTL positivity index had almost fallen back to its recent low point in June 2019.
Vic Jannels (pictured), CEO at the ASTL, said: “This year has been a year like no other, but short-term mortgage lenders have demonstrated their resilience and ability to adapt in challenging circumstances.
“It is particularly encouraging that so many of our members are confident about the long-term prospects for the UK economy.
“And while we face much uncertainty and many challenges in the immediate future, those businesses that continue to maintain high standards of underwriting and customer focus will be well-positioned to benefit from economic recovery in the future.”