The average loan size seen in this period was £3m, with 74 deals completed overall.

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The majority of facilities were bridging loans (29%), with commercial (11%), development (14%) and BTL (16%) facilities making up a large proportion of deals completed. 

58% of loans were used for refinance, with the remaining 42% used for purchase. 

Similarly, 53% were acquired by LTD companies with 47% for personal use. 

Edward Horn-Smith, managing director at Arc & Co. (pictured above), commented: “Despite this positive sentiment leading into the new year and increasing numbers of market participants forecasting base rate decreases in H1, the Bank of England has been at pains to dampen expectations, citing sticky wage inflation and potential geopolitical shocks in the Middle East.

“In terms of financing activity for 2024, whilst we hope new investment activity picks up in H1, we think this is more likely to materialise towards the latter half of the year; we stand ready, however, to assist investors and developers with our advice and deep funding relationships.

“Overall, while we are optimistic, with high volumes of refinancing expected to be the focus for the coming months, we anticipate momentum to build towards H2 with investors re-entering the market looking for price adjusted opportunities.”