GDP remained on a reasonably flat trajectory throughout 2023, with UK GDP estimated to have fallen by 0.1% in Q3 while, in Q2, it was estimated to have risen by 0.2%.

The data showed the UK GDP grew six times last year, while moving into the minus growth area four times , with one month remaining neutral, with December’s estimates yet to be announced.

Meanwhile, the BoE has held interest rates at 5.25% since August 2023, while the inflation rate now sits at 4.2% from the October 2022 peak of 9.6%.

Jonathan Samuels, CEO at Octane Capital, spoke to B&C about what these figures mean for the specialist finance market: “The market expects the BoE to drop rates early this year but, if the economy is still growing, there is less incentive for the bank to do that.

“Their preference may well be to keep rates higher for longer so as to firmly keep inflation down; remember, the inflation target is 2% and we are still nearly double that.

“When the bank meets on 1st February to decide on the base rate, I think the GDP figures out today (12th January) will encourage them to hold rates flat rather than deliver the early cut.

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“There is now a good chance that the UK will escape recession.

"December is likely to be a month of GDP growth with all that Christmas spending — while that is good news because nobody wants the dreaded ‘R’ word, it might mean rates stay higher for longer just as the bank promised with their ‘Table Mountain’ analogy.”

Gareth Lewis, managing director at MT Finance, added: “The impact from a rate perspective takes a while to drip feed through into bridging.

“But, as and when the interest rate environment improves, we tend to see more lenders looking to sharpen their pencil and improve rates, which is what has already happened this year.

“Bridging works well in a good environment as well as a negative environment or recession because of the nature of how we assess transactions.

“We have a common-sense approach to lending, helping people out of sticky situations or to consolidate their position financially while they wait for a sale, or helping people buy property from a distressed sale.

“Bridging finance is fluid and flexible — a useful tool whether market conditions are good or bad."