Bridging Loans And The Increase In Housing In Britain.
After the housing budget was allocated by the Chancellor in the autumn statement, the amount of affordable homes available for the UK population has been targeted to significantly increase. The growth of the bridging market has reflected this rise too, it is a financial solution that is without doubt helping to get more homes in Britain built. Despite more government funding being available for housing developments, it won’t solve the demand for more housing overnight, therefore niche lending helps to fill this gap.
Smaller developers tend to rely more on bridging finance as they may not necessarily have a large portfolio which they can leverage. Duncan Kreeger, director of West One Loans, stated that: “The housebuilding measures announced in the Autumn Statement will hopefully go some way towards making up the shortfall between the supply of homes in this country and the demand as the rate of construction in this country hasn’t kept pace with a rapidly rising population for some time now.” Hence bridging finance will help the housing market and the developers to meet the new government targets.
It is a respected form of funding for developers and business alike, allowing flexibility and financial flow. As a source of lending it literally bridges the gap between purchasing either a building to renovate or land, pre-construction. Bridging finance also allows a property to be bought at auction as the financial solution is determined prior to this. It can also help you to secure finance on more than one property at a time. So whether you are a developer renovating a building, or embarking on a new build, this form of finance provides simplicity and fluidity.