A report by Avamore Capital has examined market sentiment regarding the unregulated bridging and development finance space across 2019 and is based on feedback from around 40 contributors, including brokers, developers and service providers.
- DFT roundtable: What areas of property development finance finance are most underserved?
- Avamore Capital provides £2.6m loan for finish and exit scheme
- Avamore completes its largest ever deal
Other highlights from the report included:
- lenders kept leverage low at an average of 65% LTGDV for development finance and 68.5% LTV for bridging finance — this created more opportunities for mezzanine and second charge funders
- conservatism was reflected through longer completion times, from 7.4 weeks in Q1 2019 to 9.2 weeks in Q4 2019
- contributors suggested that new lender entrants led to prices falling in the bridging space, from 9.24% per annum to 8.16%
- more experienced lenders moving into value-add spaces also drove down prices in the development finance sector
- 90% believed the UK would reach a withdrawal agreement
- 2020 may yield greater opportunities for efficiency in the affordable housing sector
- the market for small, high-quality units for the retirement sector is expected to grow
You can view the full report on Avamore’s website.