Brokers deem bridging the most likely sector to grow in H2 2021

More than a quarter (26%) of brokers believe that the bridging market is best positioned to benefit from the current strength of the property market, according to Shawbrook Bank’s recent survey of 187 intermediaries.

Semi-commercial was the second most likely area to grow, with 24% of brokers predicting strong performance, followed in third place by BTL at 23%.

Since the start of the year, 67% of intermediaries have seen a rise in business volumes, half of which reported a 20% increase or more in current business levels.

The research also revealed that 71% of respondents expect to see landlords up the number of properties in their portfolios this year.

In terms of investors’ buying patterns, nearly half (44%) of brokers have noticed a change in the types of residential properties that their clients are looking to buy, which some believe is due to the stronger rental yields that are currently being achieved by alternative property types.  

Overall, 74% of brokers surveyed are confident about the prospects of business growth until the end of the year, a significant increase to the result registered at the end of 2020 (60%).

Gavin Seaholme, head of sales at Shawbrook Bank (pictured above), said: “In what could have been a really difficult period for the market, a sense of urgency from buyers and sellers has instead created a perfect storm of increased activity levels and higher property values. 

“Even as the stamp duty holiday has come to a close, our research highlights a continued confidence and commitment to the market from landlords and investors. 

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

“In recent years, the bridging market has evolved significantly, now viewed as an effective financial solution for the longer term. 

“The popularity and opportunity for growth in this area shows no signs of slowing down, even as we enter a quieter period for the market. 

“For brokers, it’s important that they are making clients aware of all possible finance options that work for them both in the short and long-term.”

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