Bridging Lenders Remain Optimistic for the Future of UK Economy
A recent opinion survey, published by The Association of Short Term Lenders (ASTL), indicates a positive long-term outlook for the bridging market and the UK economy as a whole. Following the budget announcement in early March, more than 73% of bridging finance providers remain confident about the long term health of the economy, in comparison with just 64% recorded last July.
The survey shows that 87% of bridging lenders are expecting a significant increase in their business turnover over the next 6 months, with a 77% expectation that the wider bridging sector will achieve a healthy growth in turnover too. These figures have shown a great improvement on the previous survey, where 36% of responders predicted the sector as a whole to shrink with 41% of bridging providers anticipating a decline in their own business turnover.
On the subject of competition between bridging loan providers, survey participants were divided in their opinion, with 47% believing competition will remain the same over the next six month period and 43% expecting an increase. A mere 10% thought competition would actually decrease.
Vic Jannels, CEO at the ASTL, said: “This latest sentiment survey of the ASTL’s members is an important one as it gives us an opportunity to take a step back and reflect on the year we have been through. The significant increase in positivity compared to last summer reflects not only the general optimism about the rollout of the vaccination programme, but also the way that bridging lenders have been able to evolve and adapt to the changing environment.
“The sector is in a strong position to continue to support the recovery with fast, flexible short-term lending to meet the diverse needs of a range of customers.”