The latest edition of West One Loans Bridging Index shows the rate of growth slowing in the second quarter as the spate of public holidays and tighter funding conditions combined to drag down lending.
The main headlines of this latest Index are:
- Bank holidays and Jubilee reduce activity in May and June
- Average loan size drops 11% from Q1 to £368,000
- Rates increase marginally as credit conditions tighten
- Gross lending set to reach £1.5 billion by end of 2012 as industry continues to grow
- High-street lenders’ funding problems drive more credit-worthy property investors into the arms of bridging
Duncan Kreeger, chairman of West One Loans, explained: “It’s hardly surprising the pace of growth is slowing. Last year and the first quarter of this year were a golden spell for bridging. The rate of growth we saw over that period was never likely to be sustained over the long term. But that’s not to say the bridging market is running out of steam. Far from it. We believe it’s still someway off reaching its peak. The industry is maturing and entering the next phase of its evolution. It’s beginning to attract a more up market class of buy-to-let investor who, despite being credit worthy, often struggles to meet the increasingly tough lending criteria demanded by high-street banks.”
For the full Index please click here: West One Loans Bridging Index
For the full press release please click here: West One Bridging Index Press Release
