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18 April 2024

More than two thirds (68%) of brokers expect to arrange more bridging loans in 2024 than 2023, according to the latest Castle Trust Bank Pulse survey.

The research found that a quarter (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.

And brokers responded to this demand for bridging by recruiting more people. The survey found that 42% of respondents’ teams grew in 2023.

According to respondents, the biggest risks to the continued growth of the bridging market are continued high interest rates and political uncertainty, followed by property prices and a worsening economy.

These results come from the latest Pulse survey that has been run by Castle Trust Bank with the aim of tracking changes in sentiment and behaviour in bridging, as well as gauging broker opinion on topical issues.

Specialist finance brokers across the industry were invited to take part in the survey. In addition, the results reflect responses from Castle Trust Bank’s panel of Pulse Partners which includes Brightstar, CFP Group, Charleston Financial, Complete FS, Coreco, Karis, Propp and Vibe Finance. The full results of the survey can be found on Castle Trust Bank’s website at www.castletrust.co.uk/intermediaries-lending/pulse-survey .

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.”