ASTL: Bridging lenders upbeat on long-term prospects
The latest sentiment survey from the Association of Short Term Lenders (ASTL) found that bridging lenders are upbeat about the long-term prospects for the UK economy, despite the immediate challenges faced by the sector.
The research, conducted in the first half of July, found that more than 64% of bridging lenders are confident about the long-term prospects for the economy, compared to just 50% in June 2019.
Lenders were split on the immediate prospects for their own businesses, with 41% saying they expect turnover to grow in the next six months, matching the 41% who think it will shrink.
A further 41% of lenders expected the turnover of the bridging finance sector as a whole to grow in the next six months, with 36% saying it will shrink.
However, 43% said that house prices will fall in the next six months, with just 24% expecting there to be slight growth.
Competition in the sector is unlikely to increase in the second half of 2020, with just 5% of lenders saying they think competition will increase, while 57% say that competition is likely to decrease.
Vic Jannels (pictured), CEO at the ASTL, said: “2020 has been a year like no other, but short-term mortgage lenders have demonstrated their resilience and ability to adapt in challenging circumstances.
“It is particularly encouraging that so many of our members are confident about the long-term prospects for the UK economy.
“And while we face much uncertainty and many challenges in the immediate future, those businesses that continue to maintain high standards of underwriting and customer focus will be well-positioned to benefit from economic recovery in the future.”