Brokers expect bridging to be a lead growth segment in H2 – Shawbrook

The lender’s study of 187 brokers showed 26 per cent expected bridging to grow in H2, while 24 per cent said the same for semi-commercial lending and 23 per cent for buy-to-let.

Attitudes towards the market have shifted since the end of 2020. Some 74 per cent of commercial brokers in June said they felt confident about the prospects for growth for the rest of the year, up from 60 per cent in December. 

Additionally, 71 per cent of brokers operating in the buy-to-let, bridging and commercial sectors predicted landlords would increase the number of properties in their portfolio in H2. 

Investors’ buying patterns appeared to be shifting. Some 44 per cent of respondents said they noticed a change in the types of properties being purchased, with 42 per cent saying this was down to expected yields. 

Brokers reported healthy business in general, with 67 per cent saying they had seen a rise in volumes since the start of the year. 

Half of respondents had seen growth of 20 per cent or more in business levels. 

Gavin Seaholme, head of sales at Shawbrook Bank, said: “In what could have been a really difficult period, a sense of urgency from buyers and sellers has instead created increased activity and higher values.  

“Those in a position to diversify or expand their portfolios are not shying away from current opportunities.”  

He added: “Bridging has evolved significantly in recent years and is now viewed as an effective financial solution for the longer term. It allows investors to access capital at a much faster rate than through more traditional finance options.  

“The popularity of the product, and opportunity for growth, show no signs of slowing. For brokers, it’s important they make clients aware of all possible finance options,” Seaholme said.