It’s hard to believe that we’ve reached the mid-year point; time has really flown in 2022. Traditionally, this is a good time to take a view on where we are and what the rest of the year might bring.
It’s been an interesting six months in the commercial market. Largely dominated by the boom in BTL, as property investors switched their focus to residential for a safer investment opportunity. The cost of living crisis also means that, sadly, owning a home may never be an option for some. Our own research shows that 75% of homebuyers fear that homeownership is being pushed out of reach for many, further increasing the demand for good quality BTL.
Technology also continues to be a big focus as lenders look for new ways to enhance customer experience and make process improvements. For us, this has meant implementing our broker portal platform while maintaining our relationship-driven approach. The portal allows our brokers better control and visibility of their applications, a smoother process, and the ability to upload documents and check on progress. This has been a great success, and we’re hearing regular positive comments.
Supporting the market
This year more than ever, it’s so important that lenders understand the challenges faced by their customers, and the product changes we have made so far have been driven by the desire to make the range accessible to more borrowers who need us. As a result, we’ve delivered a significant increase in business, doubling our lending volumes and supporting more brokers and customers than ever before.
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Looking ahead
There’s no doubt of the continued uncertainty in the economy, with rising inflation and interest rates and a war in Ukraine. However, looking at the market, my view is that high demand in the BTL space is set to continue, even though the government is seeking to increase the supply of residential properties and encourage more private ownership.
But it’s not all about BTL, there’s also the role of commercial investment to consider, such as the need for flexible office space or the conversion of empty office or retail units for facilities perhaps more suited to local need.
As to the cost of living crisis, there’s no doubt of the ripple effect which filters through to the commercial market, if people stop spending their money on leisure, for example.
However, this may also have a positive impact on holiday lets, as Brits feel cautious about spending money to go overseas. This is certainly what we saw last year with the staycation boom, as people got a taste of holidaying in the UK when the option for overseas travel wasn’t there.
For us, we’ll be focusing on product development, responding to market demand, and building on the great relationships we already have with our brokers. We’re also directing our attention to our regional hubs as a presence for brokers where they need us; the portal should complement those relationships, not replace them.
Whatever the rest of the year brings, we’ll be there to provide strong and stable support for the commercial market, and we’re confident the industry shares this sentiment.
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