What lies ahead?

There are certainly challenges ahead, but if last year is anything to go by, brokers and lenders working together will be able to overcome all obstacles.

Let’s examine what’s on the horizon.

Bridging

We saw significant growth in our commercial bridging lending last year at Together, and while we expect that to continue, we’ll also have a clear focus on regulated bridging for 2017.

I’ll be sharing more on this in my next blog, but it’s safe to say that following our pilot programme over the past 12 months, we’re in no doubt that there’s clear demand for this product from homebuyers seeking to secure their ideal home, or to trade up to the next rung of the ladder.

What impact will Brexit have on the market?

Brexit

It looks likely that we’ll know by spring what the roadmap looks like for our exit from the European Union.

Without more details it’s hard to anticipate what the long-term impact for the property market may be, but overall the wave of initial uncertainty seems to have settled.

While commercial property, particularly in London, was hardest hit by the shockwaves of Brexit last June, once we can see the clear structure and timescales, it will help to minimise any worries property investors may have.

One thing that Brexit won’t change, though, is the fact we have an undersupply of housing in the UK, so property will still be sought-after, and that’s something that goes hand-in-hand with a continuing demand for bridging finance.

What will happen to the buy-to-let market in 2017?

Buy-to-let

Last year, buy-to-let investors were faced with the stamp-duty hike and the news of a host of other changes, including the cuts to mortgage tax relief and the impending ban on lettings fees.

The government’s intention with the changes was to “level the playing field” between investors and homebuyers, although many property investors feel they’ve been unfairly targeted.

Regardless of your view on the strategy, the fact is that, to date at least, property investors have taken the changes in their stride and adapted their models to take into account the tax changes and their impact on profitability.

While we may see a dip in buy-to-let as further changes come into effect, it’s unlikely that this will cease to be a popular form of investment, as long as property is in high demand.

We’ve got plenty of exciting plans as we get underway with the new year and look forward to working with our broker community as we navigate any challenges together.