There has been notable activity since the turn of the year – and that's only likely to grow

The bridging market will thrive in 2025 – and that’s not just a gung ho statement that rhymes for the sake of rhyming. It’s the view of industry experts, who believe short-term lending will show real growth this year.
They are already reporting notable activity in the first few weeks of January and believe it will continue to be driven by economic factors as this 12 months unfolds.
Rachel Reeves’ autumn Budget, with revised Stamp Duty rules coming into play, and property owners seeking to hurriedly off-load some or all of their portfolios, will all play a part in making bridging a solution to which increasing numbers of investors turn.
Sy Nathan (pictured left), head of bridging & structured finance at broker Dynamo, identifies a fresh buzz in the market.
“I’ve already seen it,” Nathan told Mortgage Introducer. “The enquiries that I'm getting at the moment are heavily focused on acquisitions, and I do see a big opportunity. I think we're going to see a strong growth. The Budget and what we've seen with tax changes have really made clients think about how they're going to maximise deals. With the increase in Stamp Duty, some of the deals which you would have done are probably not going to be viable now, when you do the full metrics.
“A lot of my clients are looking at buying a limited company with a portfolio of properties, which becomes more cost effective. You have to get a little bit cleverer with the way you structure those deals. The high street is strengthening and a lot of clients are pivoting, diversifying to mixed-use properties, to get a return in the current market, and bridging is an option to add value, for sure.”
Nathan acknowledges that inflationary pressures and a rise in product rates have created a volatility at the start of the year, which will lead to some property owners quickly disposing of their properties. “When it comes to volatility, there's also an opportunity,” he noted.
As a short-term funding solution with traditionally higher rates, bridging has historically suffered from a somewhat negative reputation, but Nathan believes clients are reappraising its value.
“When you break it down for them and actually give them a real understanding of how it can help, they really understand it,” he observed. “It is a means to an end and it's a great tool to use - so, I think that that stigma is changing.”
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Just how active is business in the bridging sector?
Paula Storey (pictured right), business development manager with London-based specialist property lender Lakeshield, also reports that the bridging market is doing brisk business.
“We've got a busy pipeline across all different asset classes,” Storey said. “I think the market is going to be busier than last year. Obviously, the interest rates holding and coming down a smidge in the last few months is ultimately helping, and making more people want to do transactions. I hope that those rates continue to stay where they are or drop a bit.”
According to Storey, redundant office buildings are being snapped up to convert into residential accommodation. Developers are also buying up housing stock, sometimes at knock-down prices, from landlords who find that rates are too high for them when they come to refinance. Those buyers often need a short-term loan to secure their assets.
“There's still a shortage of housing in the UK - everyone needs to live somewhere, and the builders can't build them quick enough,” Storey said. “We work with a lot of borrowers who are, for example, building, three or four houses and they have still got to sell two. They need to pay back the development finance, and they're not going to sell them in time, so we're refinancing those. It gives them a bit more time on a bridge to sell those last assets to clear off the debt in its entirety.”
Lakeshield offers finance for residential or commercial purchases, with loans from £100,000 to £15m. Property is increasingly coming under the hammer, generating fresh opportunities. “There's a lot of property going into auctions, and specialist lending rates are coming down,” Storey said.
She has some sage advice for the broker community.
“What I’d say to brokers is just choose a lender wisely, make sure it is the right lender for the client,” Storey said. “It's not always about the cheapest rate, it's about the back end as well, once the loan is complete and someone's got to repay back that loan.”