The Broker Sentiment Survey conducted by West One Loans has revealed that £1.29 billion has been lent for property refurbishments and conversions in the past 12 months, double the amount in the year leading to April 2013.
The annual survey of over 250 financial intermediaries by the bridging provider found that there were 2800 separate projects over the last year. This meant that loans for all forms of property improvement now represent 61 per cent of total industry gross bridging lending.
Commenting on the results, Duncan Kreeger, Director at West One Loans said: “Property is in seriously short supply in the UK. Solving the gridlock will take serious imagination and better use of existing property.
“But at the same time, finance is becoming more flexible and more suited to this post-recession world. New lending practices are gradually bringing more properties into use – those which have been empty for far too long.”
Results showed that 57 per cent of brokers are expecting growth in lending for property refurbishment and conversion.
Mr Kreeger added: “Finance that can actually increase the pool of property in the system has always been even more useful than loans that simply facilitate purchases.
“We need more homes in the places where people want to live, and more offices where successful firms can do business.
“In these cases prices are high and refurbishment can be very profitable. But only a handful of the most modern lenders have the flexibility and the funding lines to put the wheels in motion.”
By Emma Billingham
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