"Brokers are positive about the outlook for business levels, with a quarter expecting a significant rise in enquiries."
- Anna Lewis, commercial director at Castle Trust Bank
More than two thirds (68%) of brokers expect to arrange more bridging loans in 2024 than 2023, according to the latest Castle Trust Bank research.
Its survey found that 25% of brokers expect a ‘good increase’ in bridging business during 2024, with 43% saying they think it will be ‘slightly higher’. One in five (21%) of brokers expect demand to remain the same, whilst only 11% are concerned that bridging business levels may fall.
This positive outlook reflects continued growth in demand for bridging finance. According to the research, 42% of brokers said they arranged more bridging loans in 2023 than during the previous year, contrasting the 38% of brokers that said they arranged fewer bridging loans for first-time investors in the past 12 months – indicating that experienced property investors are driving the growing demand for bridging loans.
The research also found that brokers are responding to this demand for bridging by recruiting more people, with 42% of respondents’ teams growing in 2023.
According to brokers, the biggest risks to the continued growth of the bridging market are high interest rates and political uncertainty, followed by property prices and a worsening economy.
Anna Lewis, commercial director at Castle Trust Bank, said: “The results of the latest Pulse survey from Castle Trust Bank reflect market data which shows that bridging has continued to go from strength to strength despite difficult economic conditions. And brokers are positive about the outlook for business levels, with a quarter expecting a significant rise in enquiries.
“These results demonstrate increasing confidence in the property market as well as the growing use of bridging finance amongst investors to help them achieve their objectives, whether that’s to facilitate a quick property purchase or to finance a refurbishment or conversion project.”
