Members of the Association of Short Term Lenders (ASTL) continue to be confident about both the sector and their own businesses, and that this positivity has grown since last quarter, the trade body has reported.

78% of members expect their business turnover to grow, with 63% expecting the same of the bridging finance sector as a whole.

In addition, 93% believe providing short term finance to SME housebuilders is a growth area.

However, members are slightly less sanguine about the long-term future prospects of the UK economy, positivity has decreased from 50% in December 2017 to 43%. No less than 52% are unsure and only 11% are negative. The ASTL said this is likely due to the protracted nature of the Brexit negotiations combined with the rise in inflation which in turn is likely to lead to higher interest rates.

Members are split about the direction of property prices, with 52% expecting slight growth and 48% expecting prices to fall. They are lukewarm about the potential impact of the Spring Statement, with 48% neutral and 19% negative.

Benson Hersch, CEO of the ASTL, said: “Whilst I remain cautious about future prospects for the UK in a very uncertain world, in which the economic climate can change overnight, members are confident that they will continue to prosper. The use of bridging as a financial tool, both for property transactions and for other business purposes is now well-established.”