Association of Short Term Lenders (ASTL) members are confident despite speculation on how future policies towards housing and how this could affect the industry post-general election.
The ASTL conducted a sentiment survey of all of its members revealing overwhelmingly positive results. Members responded unanimously that they feel confident about the next six months while only 20% said that their business had been negatively affected by the election uncertainty.
73% of the members responded that their business has grown over the last six months. Feedback from members has consistently been that they have not been affected in the same way as the mainstream mortgage market and that bridging volumes have continued to grow, whereas Bank of England figures show that the mainstream market has either declined or remained largely static since July last year with just a slight rise in volumes this March.
73% of ASTL members also expected their business to do better in 2015 that it did in 2014. Although 27 % feel that their volumes will stay the same this year, none of the members surveyed expect their business volumes to fall in 2015. During the last survey, conducted six months ago in November last year, 35% of the respondents were still sceptical about seeing growth in the market.
Benson Hersch (pictured), CEO of ASTL, said: “Lenders in bridging market remain incredibly positive. The bridging market continues a healthy growth rate in contrast to the mainstream market that has seen setbacks throughout the last six months.
“With the ongoing shortage of supply in housing, purchasers need to make up their minds quickly so bridging finance will come into play for those who’ve not yet sold their existing property. As a result of this and a growth in the numbers of property developments, members are recording increased business volumes and this has kept confidence very high throughout the election build up. It will be interesting to measure this sentiment again over the next few weeks and months, when we know the results, to see what impact the election had.”
