Development finance ‘hotter’ than bridge loan market: TAB

According to a TAB survey, nearly half of brokers working in the specialty lending market say that development finance is now more active than the bridge loan market.

The short-term property finance lender says 46% of advisers said the development finance market was ‘hotter’, 38% thought the bridging loan market was busier, while 15% said they weren’t sure.

A record 247,500 planning permissions were granted in England in the year to the end of September last year, 36% more than the number granted the previous year – and a fifth above pre- pandemic, according to the latest official planning statistics.

The lender says its own data backs up what brokers said in its survey.

In 2021, bridging loans represented 80% of the value of the company’s loan applications. That figure has fallen to 64% so far this year.

He adds that development funding accounted for 13% of applications in 2021, up from 31% this year.

TAB Founder and Managing Director Duncan Kreeger says: “The relay market has been buoyant since 2005, but took off following the credit crunch in 2007/8.

“Since then, he has been white-hot. We are only just beginning to see the development finance space take over.

“We are seeing more and more interest from brokers looking for quick, short and medium term access to capital on behalf of clients who need to finance the construction, transformation and renovation of real estate projects.”

TAB interviewed 26 senior brokers in the specialist lending market in person at an event marking the opening of its new head office in Hertfordshire on February 24.

Priscilla C. Carnegie