What's the most popular type of specialist property investment today?

Research also reveals brokers' top consideration when choosing a bridging lender

What's the most popular type of specialist property investment today?

Refurbishment has been the most popular type of specialist property investment in the last three months, broker research carried out by Castle Trust Bank has revealed.

Nearly 40% of brokers who responded to the lender’s Pulse survey said refurbishment was the top choice for their clients, while investments in houses of multiple occupation and multi-Unit freehold blocks were also mentioned by many.

The lender noted that despite the high profile of holiday lets, it was the least popular type of specialist property investment over the last quarter, based on results of the broker survey.

In terms of choosing a bridging lender to finance their clients’ specialist property investments, the research found that most brokers opted for speed of decision first. Certainty of decision and rate were the second and third biggest consideration, respectively, when it came to reasons why they chose a bridging lender.

“The Castle Trust Pulse survey provides a snapshot of the trends and challenges brokers are currently experiencing in the bridging market, and the first set of results make for interesting reading,” commented Anna Lewis (pictured), commercial director at Castle Trust Bank. “Landlords are increasingly looking at ways they can increase their returns, and property refurbishment is the most common way they choose to do this.

“When it comes to the choice of lender, speed and certainty are at the forefront for brokers, with rate having less prominence. This perhaps reflects the recent environment of uncertainty and frequent rate rises, where speed of decision has often made a significant impact on the rate a client has been able to achieve.

“However, in a competitive market, speed and certainty have always been crucial in bridging, enabling investors to respond quickly to market opportunities and build their portfolios.”

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