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Over two-thirds of brokers expect to arrange more bridging this year

  • 18/04/2024
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Over two-thirds of brokers expect to arrange more bridging this year
Around 68% of brokers expect to arrange more bridging loans in 2024 compared to the year before, according to a survey.

According to Castle Trust Bank’s Pulse survey, a quarter of brokers expect a good increase in bridging business during 2024, and 43% say they think it will be slightly higher.

Around one in five brokers expect demand to remain the same, and only 11% are concerned that bridging business levels will fall.

The survey continued that 42% of brokers said they arranged more bridging loans in 2023 than the year before, compared to 38% of brokers who said they arranged fewer bridging loans for first-time investors in the past 12 months.

The report said that this showed that the experienced property investors are “driving the growing demand for bridging loans”.

Brokers have said that they are responding to growing bridging demand by hiring more people, with 42% of respondents’ teams growing in 2023.

The biggest risks cited by participants to bridging market growth were the continued high interest rates and political uncertainty, followed by property prices and a worsening economy.

Anna Lewis, commercial director at Castle Trust Bank, said: “The results of the latest Pulse survey from Castle Trust Bank reflect market data [that] shows that bridging has continued to go from strength to strength despite difficult economic conditions. And brokers are positive about the outlook for business levels, with a quarter expecting a significant rise in enquiries.

“These results demonstrate increasing confidence in the property market, as well as the growing use of bridging finance amongst investors to help them achieve their objectives, whether that’s to facilitate a quick property purchase or to finance a refurbishment or conversion project.”

In February, Castle Trust Bank added a flexible bridging solution.

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