Covid-19: specialist brokers remain optimistic

Shawbrook’s most recent Broker Barometer has revealed that as the UK emerges from the coronavirus pandemic, broker confidence in business growth and in the lending environment remains high.

63% of commercial brokers and 66% of second charge brokers stated that they are confident about the lending environment as coronavirus restrictions ease Similarly, when asked about their businesses over two in five commercial brokers (42%) and second charge brokers (45%) said they were confident about business growth post-pandemic.

Regarding any perceived challenges as we move through the Covid-19 crisis, the brokers surveyed expressed concern around lending restrictions, valuation issues, and lead generation. However, Shawbrook believes that as these restrictions begin to ease and the stamp duty changes take effect, there could well be more opportunity for brokers that support the professional investor community.

Meanwhile, 45% of commercial brokers and 34% of second charge brokers said they thought that investors/landlords would look to increase their portfolio in response to the pandemic

25% of second charge brokers said they had seen business volumes go up or stay the same when comparing to pre-pandemic levels, and 17% of commercial brokers said the same.

Emma Cox, sales director of property finance at Shawbrook Bank, said: “It’s difficult to predict the outlook for the property market as we emerge from Covid, there are so many variables. However, in spite of future uncertainty, it is positive to see that many brokers are optimistic when it comes to business growth and the lending environment.

“Of course, we understand that the current landscape presents a number of challenges, and some brokers will be feeling that more than others. This means that as we look ahead, and as we move further out of lockdown, it is more important than ever that lenders continue to work closely with the broker community to help navigate the inevitable challenges of the next six months.”

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