70% of Brokers Anticipate Surge in Bridging Business 2024
The latest Castle Trust Bank Pulse survey reveals that over two-thirds (68%) of brokers are gearing up to orchestrate a higher volume of bridging loans in 2024 compared to the preceding year. Among them, a notable 25% anticipate a substantial upswing in business, while 43% foresee a more modest yet promising increase.
While one in five (21%) brokers anticipates demand to hold steady, a mere 11% expresses apprehension about the possibility of bridging business levels during a downturn.
This optimistic perspective mirrors the ongoing expansion in the demand for bridging finance. The research highlights that 42% of brokers facilitated more bridging loans in 2023 compared to the previous year. Interestingly, this contrasts with the 38% of brokers who reported arranging fewer bridging loans for first-time investors over the same period. This suggests that seasoned property investors are at the forefront of propelling the escalating demand for bridging loans.
In response to the burgeoning demand for bridging services, brokers ramped up their recruitment efforts. Impressively, the survey reveals that 42% of respondents expanded their teams in 2023 to meet this growing need.
However, amidst this growth, brokers remain vigilant about potential challenges. According to respondents, the foremost concerns regarding the sustained expansion of the bridging market include persistently high bridging loan interest rates and political uncertainty. Following closely are apprehensions regarding property prices and the trajectory of the economy, underscoring the importance of navigating these factors for continued success in the sector.
The insights stem from the most recent Pulse survey conducted by Castle Trust Bank, designed to monitor shifts in sentiment and practices within the bridging landscape while capturing broker viewpoints on pertinent matters.
An array of specialist finance brokers spanning the industry participated in the survey, contributing to its comprehensive scope. Furthermore, the findings incorporate feedback from Castle Trust Bank’s esteemed panel of Pulse Partners, comprising prominent names such as Brightstar, CFP Group, Charleston Financial, Complete FS, Coreco, Karis, Propp, and Vibe Finance.