The ASTL’s sentiment survey saw a significant upturn in confidence among bridging lenders after it reported that 60% of lenders had lost confidence after the EU referendum.

However, the most recent survey has found that 30% of respondents are now positive about the UK economy, up from 6% in June, while an additional 10% have changed their outlook from negative to neutral.

Just 31% of bridging lenders expected their volumes to grow when asked in June, but now only 7% of lenders are negative about the prospect of growth in their business.

As for the wider bridging market, 45% of those in the industry think that it will grow over the next six months, while 23% expect it to shrink, again an improvement on two months ago when only 19% thought the market would grow.

Benson Hersch, chief executive of the ASTL, said that optimists would take heart from these results as there has been a definite positive swing in feelings.

“This was no doubt buoyed by the Q2 bridging figures which showed bridging completions 19% higher than in Q2 2015, applications for loans up 61%, while loans written in the year ending June 2016 were £2.85bn, an increase of 17%. 

“While only a few days of this was in the post-Brexit period, it clearly displays that the bridging industry is in a strong place at the moment.”

Surprisingly, the ASTL survey found that no one expected house prices to rise over the next six months with 43% expecting a drop.

Benson felt the results showed a sense of normality and highlighted the sense of shock that hit the industry following the referendum result.

“…It is clear that despite a bounce back, many respondents are still sitting on the fence, uncertain as to which way the wind may yet blow. 

“Newspapers talk of a ‘phoney war’ period. It will be interesting to see if these opinions change yet further following the ASTL conference in a week’s time, which will provide further in-depth information on the state of the economy, the housing market and the changes that may yet face the lending industry.”