The UK property market is facing a number of challenges in 2023. Rising interest rates and the cost of living crisis are putting pressure on buyers and sellers, and the market has experienced one of its most turbulent periods in history.
However, there is still a positive aspect to the market, particularly for eagle-eyed investors who are looking to take advantage of the current market conditions. With sellers becoming more flexible on price and the availability of bridging finance, there are opportunities for investors to secure properties at a discounted price.
The bridging finance sector in the UK has been growing steadily in recent years, and this trend is expected to continue.
The latest data from the Association of Short Term Lenders, bridging loans continued to grow in size and popularity in the first quarter of the year despite lacklustre wider economic conditions.
According to the trade association, bridging completions passed £1.4bn in the first quarter of 2023, an increase of 11.8 per cent on the December 2022 quarter. Likewise, the value of loan books also increased, up by 4 per cent to a high of just over £6.8bn.
And new data released in Zoopla’s latest House Price Index has revealed a jump in the proportion of sellers (42%) having to accept discounts of 5% or more off the asking price to achieve a sale – the highest level since 2018.
As inflation and higher interest rates have shaken up the property market, more landlords and property investors are seeking Bridging Finance to take advantage of new opportunities, fix broken chains, and complete purchases quickly before market conditions change again.