Bridging makes positive start to 2016

Bridging makes positive start to 2016




A record number of residential properties sold at auction contributed to strong bridging lending in February, according to figures released by West One Loans.

The West One Bridging Index revealed that gross annual bridging lending rose to £3.6bn in February, up 3% from £3.5bn at the end of 2015.

Stephen Wasserman, Managing Director of West One Loans, said: “A 3% rise in lending may seem moderate, but that’s relative to some significant recent sector expansion.

“A major contributor is professionals using bridging as part of their strategy to buy residential properties in need of renovation, improve them and re-sell at a healthy profit.”

West One found that the sale of residential auctions hit a record high in February, rising more than 25% year-on-year.

Stephen explained that professionals renovating properties relied upon bridging finance as most major lenders would not approve the loan in time for auction.

“In this case, the flexibility of bridging finance is well-suited to financing such activity,” Stephen stated.

“…We anticipate further growth from this group, favoured by the underlying lack of supply of new homes.

“That means renovating undesirable properties will continue to be a profitable and attractive business, from which bridging will benefit.”

Danny Waters, Chief Executive of Enterprise Finance, added: “The bridging industry has continued its success at the start of 2016, which is fantastic news for everyone involved in the sector.

“As gross lending continues to expand, there are some brilliant opportunities on offer for potential investors considering short-term finance.”

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