“The bridging market has been alive since 2005, but it has gone after the credit crunch of 2007/8. Since then, it has been white hot.”
The short-term real estate finance lender asked the opinions of brokers in the industry at an event to mark the opening of their new HQ in Hertfordshire.
While two out of every five brokers (38%) told the TAB that they thought the bridging credit market was still warmer, almost half (46%) told the lender that the development finance market was warmer. One in seven (15%) of bridge introducers surveyed was unsure.
A record number of planning applications for extensions and home improvements were approved last year. According to the latest official planning statistics, in the 12 months to the end of last September, 247,500 approvals were awarded in England, 36% higher than the number recorded in the previous year – and one-fifth above the pre-pandemic standard.
TAB says its lending data supports what brokers say. In 2021, bridge loans represented 80% of the value of loan applications. In 2022, that figure dropped to 64%. Similarly, development finance accounts for 13% of demand in 2021 – compared to 31% since early 2022.
Duncan Kreeger, founder and CEO of TAB, said: “The bridging market has been alive since 2005, but it has gone after the credit crunch of 2007/8. Since then, it has been white hot. We are now just starting to look at the development finance space. We are seeing more and more interest from brokers looking for a quick , seek short- and medium-term access to capital on behalf of clients who finance the construction, conversion, and renovation of real estate projects.
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