2023
9
UK Bridging Loans Market Report 2023
2023-09-29T13:45:47+01:00
REPA88EBCA5_D29F_4510_A65C_5C1168A977E7
1495
166957
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Report
en_GB
At a time of economic difficulty, lender flexibility and communication is vital. The industry must also ensure there are viable exit paths to reduce loan defaults. Lewis Cone, Associate…

UK Bridging Loans Market Report 2023

£ 1,495 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s UK Bridging Loans Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest UK bridging finance market trends and consumer behaviours affecting your business. Get a 360° view of the UK bridging finance market, including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • The impact of the current economic climate on bridging loans and how lenders and borrowers have reacted.
  • The estimated and forecast values of individual segments in the market between 2018 and 2028.
  • Recent UK bridging finance market trends and how they are affecting the use of loans.
  • Lenders’ competitive strategies and recent UK bridging finance market development.

UK Bridging Finance Market Outlook

Rising interest rates have restricted the amount of finance available to borrowers, which has made the flexibility of bridging even more appealing. However, wider economic pressures mean that there must be robust exit strategies for borrowers otherwise the UK bridging finance market could see an increase in losses.

  • Bridging finance market size: The value of residential bridging loans is estimated to reach £3.41 billion in 2023.

UK Bridging Finance Market Trends and Opportunities

Incomplete development projects will require funds

With inflation remaining high, developers will require finance to complete projects that have now gone over-budget. The combination of higher rates, lower LTVs, and increased defaults means mainstream lenders’ ability and appetite to lend has weakened – providing lenders in the UK bridging finance market with a competitive advantage.

  • UK bridging loans market share: Chain breaks loans hold 25% of the break bridging loans market share.

Bridging could fill the green finance gap

With net zero targets in place across the economy, businesses need to adopt sustainable practices in finance. While demand for green finance products is growing, many businesses still face barriers in accessing these products. Wider information on the finance options open to businesses needs to be better communicated in order to boost uptake.

To learn more about the UK Bridging Loans Market, including a five-year forecast, consumer behaviour analysis, and market opportunities recommendations, purchase our full UK Bridging Finance Market Report.

Leading Brands in the UK Bridging Finance Market

Cain International, Aspen Bridging, Market Financial Solutions, Octopus, Shawbrook, Together Money.

Additional Features Included with Your Purchase

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Expert Insights from a Finance Analyst

This report, written by Lewis Cone, a leading finance analyst, delivers in-depth commentary and analysis to highlight trends in the UK bridging finance market and add expert context to the numbers.

At a time of economic difficulty, lender flexibility and communication is vital. The industry must also ensure there are viable exit paths to reduce loan defaults.

Lewis Cone - Research Analyst

Lewis Cone
Associate Director – Financial Services

Table of Contents

  1. Executive Summary

    • Key issues covered in this Report
  2. Market dynamics and outlook

    • The five-year outlook for bridging loans
    • Bridging expected to grow by 27% by 2028…
    • – Graph 1: bridging loans market value, in aggregated loan balances, by sector, 2023
    • – Graph 2: bridging loans market value, in aggregated loan balances, 2019-23
    • Chain break overtakes investment purchases as most common use of loan…
    • – Graph 3: bridging loans market value segmentation, by loan purpose, 2023
    • – Graph 4: ASTL Gross Mortgage Lending Estimates, 2019-23
    • Bridging rates rise with extra strain now on completion times
    • Competitive strategies
  3. Market size

    • Market situation
    • Bridging navigates through property market cooling…
    • … to hit £10 billion milestone
    • Exit strategies key in times of economic uncertainty
  4. Market segmentation

    • Interest rate rises influencing demand for certain products
    • – Graph 5: bridging loans market value, in aggregated loan balances, by sector, 2019-23
    • Chain breaks overtake investment purchases as most common use of loan
    • Loan purpose – 2022
    • – Graph 6: bridging loans market value segmentation, by loan purpose, 2022
    • Loan purpose – 2023
    • – Graph 7: bridging loans market value segmentation, by loan purpose, 2023
  5. Market forecast

    • Five-year outlook
    • Learnings from the last recession
    • Bridging remains more flexible than mainstream lending and provides unique, bespoke funding
    • Bridging expected to grow by 27% by 2028…
    • …as economic challenges ease
    • Commercial loans to bounce back following pandemic period slump
    • Segmented forecast, 2024 to 2028
    • Segmented forecast analysis
    • Mortgage rates set to stabilise, providing greater residential opportunities
  6. Market trends

    • Residential property market cools…
    • …but opportunities remain
    • Halifax and Nationwide house price indices show downward trend since Q3 2022
    • – Graph 8: Halifax and Nationwide house price indices, by annual change per quarter, Q1 2015-Q2 2023
    • Bridging reaches industry-high share of total mortgage lending
    • Bridging continues to outperform mortgage lending growth
    • – Graph 9: ASTL gross mortgage lending estimates, 2019-23
    • East of England most in demand region for commercial property
    • Higher regulated loan use whilst LTVs remain consistent
    • Bridging rates rise with extra strain now on completion times
  7. Macro-economic factors

    • GDP growth remains sluggish
    • Real GDP first quarterly estimates, Q1 2022-Q2 2023
    • – Graph 10: real GDP first quarterly estimates, 2022-23
    • Bank Rate reaches 15-year high
    • Bank Rate, 2008-23, by date of adjustment
    • – Graph 11: Bank Rate, 2008-23
    • Impact on the Industry
    • Economic Outlook
  8. Market drivers

    • Property market cools as inflation and interest rates bite…
    • … providing ample opportunities for bridging lenders
    • Residential property transactions
    • Number of residential property transactions, seasonally-adjusted, 2018-19 to 2022-23
    • – Graph 12: number of residential property transactions, 2018-19 to 2022-23
    • Non-residential property transactions
    • Number of non-residential property transactions, seasonally adjusted, 2018-19 to 2022-23
    • – Graph 13: number of non-residential property transactions, 2018-19 to 2022-23
    • Company insolvencies rise to 13-year high as debt and cost burden becomes too much for some…
    • – Graph 14: company insolvencies in England and Wales, 2018-23*
    • Consumer Duty means lenders need to ensure customers’ needs are met
  9. COMPETITIVE LANDSCAPE

  10. Industry structure

    • Industry background
    • Industry background (cont.)
    • Bridging CPD online course launched
    • Lenders continue to secure funding facilities…
    • …to boost product growth
    • Major industry movements
    • Major industry movements (cont.)
  11. Competitive strategies

  12. Company profiles

    • Aspen Bridging
    • Cain International
    • Market Financial Solutions Ltd
    • Octopus Real Estate
    • Shawbrook Bank
    • Together Commercial Lending
    • United Trust Bank
    • West One Loan
  13. APPENDIX

  14. Report scope and definitions

    • Market definitions
  15. Data sources

    • External data sources
  16. Abbreviations

  17. Methodology

    • B2B research methodology
    • Forecast methodology
    • Market forecast
  18. Further sources and contacts

    • Trade associations
    • Trade magazines
    • Trade events

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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