ASTL Conference 2022: ASTL launches report on consumer perceptions of bridging finance

The Consumer Perceptions of Short-Term Finance report, which was conducted by YouGov on behalf of the association between 11-14th February this year, highlights the views of over 2,000 participants — of which 1,266 were UK adults and property owners.

It also contains a section on debunking the biggest bridging finance misconceptions, as well as an overview of the common uses for short-term finance.

According to Vic Jannels, CEO at the ASTL (pictured above), the research was conducted in order to gain a sense of where bridging stands in the perception of the average person, and bolster understanding and awareness of the uses and benefits of short-term lending among the wider population.

“This report aims to act as a benchmark for progress, as well as highlighting where we need to focus most when it comes to changing public perception,” he added.

“It is our hope that this and subsequent reports will start to show positive trends in terms of the public’s view of this vital and increasingly competitive route to funding.”

Looking to the future, Vic stated that the association will continue to increase awareness of bridging finance through a “multi-pronged approach”, which includes working with HM Treasury and the FCA in order to get bridging finance’s contribution to the UK economy on the map, as well as pushing for greater coverage and education in the media.

In a speech made at this year’s ASTL conference, Alex Hammond, MD at Also Communications, director at Square 1 Media, and co-author of the ASTL white paper report, confirmed that the association will repeat the research to track progress, and monitor trends, with the goal of publishing a second report in 2023.

Key data highlighted in the report

The Consumer Perceptions of Short-Term Finance report revealed that while 67% of respondents know about bridging finance, 58% are unclear on how it might be used.

In addition, 39% don’t know how long it might take to receive funds.

According to the research, the overall lack of understanding seems to have influenced people’s willingness to reach out for short-term finance, as only 19% said they were very or fairly likely to turn to bridging in the event of a chain-break situation — while 61% said they were unlikely to.

However, the study revealed some positive changes in perceptions, as 39% of people aged 18-24 said they would consider using bridging finance in a chain-break situation.

The report also highlighted knowledge gaps when it comes to how bridging finance is regulated, as 54% of respondents did not know the level of regulation in this industry.

Moreover, 54% confirmed they do not have a sense of the average annual bridging rates.

The primary fears around bridging include the cost (47%), the exit (32%) and the ability to sell the property (48%).

“It is heartening to see some positive trends emerging, most notably greater understanding of and willingness to use bridging among the younger generations, who are themselves more likely to be looking to invest in property in the near future,” said Vic.

“However, there is clearly some important work to be done, and through relationships with key media outlets – both in the trade and mainstream press – the ASTL is looking to present bridging finance in a better, brighter light.”

Vic also highlighted the importance of brokers, who he claimed are “key” to navigating complex financial matters.

“There are many great brokers working within the short-term finance market, with ever more looking to break in as this sector goes from strength to strength. 

“What we need is for prospective borrowers to understand their value, and mainstream brokers to know where to refer clients. 

“We believe that the introduction of the Certified Practitioner in Specialist Property Finance (CPSP) programme will help to raise the profile of advice and expertise in this sector.

“This report has created a picture about public perception and awareness, which has provided us with a well-rounded sense of our jumping off point.

“I have great confidence that due to the hard work of many in this industry, the ASTL included, we can build on these foundations, building greater awareness and consideration of bridging among customers in the future.”