LendInvest Shares Themes which Could Dominate Residential Bridging Market in 2022

The team at UK’s LendInvest, a leading property finance platform, notes that January was a busy month for their bridging department.

LendInvest, which recently topped £2 billion in AUM, also mentioned that their free valuation offer “drove enquiry and application growth as developers and investors looked to start the year on a strong footing.” In turn, it brought even more business to their bridging portal, meaning an “increasing number of brokers experienced a faster way to complete their bridging applications.”

LendInvest further noted that by having their finger on the pulse, they are beginning to see some early trends develop for the 2022 residential bridging market, and will be “seeing how they play out in the months to come, and how lenders need to respond to these trends.”

Although late 2020 market activity pointed towards a “realignment” post-Covid, of home workers moving out of urban areas into the countryside, this has “somewhat reversed itself in the past year.”

LendInvest pointed out that urban centers will “retain their allure to property investors, landlords, renters and prospective homeowners, just as much as the extra space the countryside offers.”

According to LendInvest, that “spells good news for investors who, with the right properties, can see opportunities in a diverse range of locations, including other major cities across the UK and Scotland as well as the draw that is London.” In a country with so many homes required, it’s “the quality of property stock that shines through.”

The team at LendInvest also noted that the New Year has “brought with it some downbeat forecasts about the inflationary state of the market, with incomes, signposted tax and energy price rises set to hit households in the spring.”

Again, the demand for high-quality homes in this country “never really disappears, but this might affect the sales market.”

LendInvest believes that this will “put a bigger emphasis on investment and development for retention, rather than sale, as the rental market could be more secure.” Also, if transactions dip in the short-term, the long-term demand for housing remains and “is likely to rally by completion.” If it hasn’t, that’s when “smooth Development Exit and Buy-to-Let transitions come into play.”

LendInvest added:

“Aforementioned energy price rises puts a greater emphasis on energy efficient homes for owners and renters. As well as government targets and conscientious consumers leading the market, energy efficient properties are a cost of living requirement now, which will make finance that supports and incentivizes this even more important.”

The company also noted:

“With high need comes high demand and more pressure on lenders to deliver quickly and with a minimum of fuss. It’s been our talking point for years, but technology will be essential to keep up with the needs of borrowers and the demand this places on brokers. Lenders can provide the technology, however often adoption can be a stumbling block as people are nervous about moving on from tried and trusted enquiry, application and delivery methods.”

Guiding people via these new processes with professional support at every step – as well as first class UX – and the right incentives should help us all “bring bridging finance in to the modern world.”

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