Annual bridging lending reached a record high of £4.7bn in Q3, according to the latest index from specialist lender West One.
The ‘Bridging Index’ showed that gross annualised lending increased from £4.3bn in June to exceed 2016’s pre-Brexit referendum high of £4.4bn, breaking quarterly lending records.
The figure for Q3 represents a 10 per cent increase on the same period last year.
West One figures found that the trend of smaller transaction sizes seen in the first half of the year continued through the third quarter.
Average loan sizes dipped under £600,000 compared with averages in excess of £900,000 at the same time last year, flattening-out the longer-run trend in the last two years that had previously seen significant growth, says the lender.
West One sales director Marie Grundy says: “2017 has proven to be a strong year for bridging finance, with a clear return to form after the post-Referendum turbulence this time last year.
“Seeing further robust new business performance in a quarter that includes the typically-quieter summer holiday period is very encouraging. The wider property and property finance markets have flattened against continued political uncertainty due to slow progress negotiating Brexit, and the prospect of interest base rate rises finally arriving. This new market high therefore reflects the underlying strength of bridging.”