The bridging and short term property finance sector has continued to experience a period of steady and controlled growth, with ‘general improvements’ and ‘increased average bridging loan sizes’ being reported by the AOBP.

Likewise, the Council for Mortgage Lenders has reported that “gross mortgage lending was an estimated £17 billion in December… 49% higher than December 2012” , mirroring the growth in bridging lending.

It is clear that the re-emergence of the long term mortgage market will be of no detriment to the bridging sector, but rather the two lending platforms will continue to complement and facilitate one another.

Whilst traditional high street lenders remain risk averse towards funding specialist property investment projects, the bridging sector continues to play an essential and recognised role in providing the short term capital required by property professionals wishing to exploit these opportunities. The liquidity of the long term mortgage market does however also support these investment projects, by instilling greater confidence in both bridging lenders and borrowers that exit strategies are and will be available.

Also, whilst the long term mortgage market is becoming more buoyant, it is often unable to provide the capital required with the speed that is often demanded. The bridging sector is however synonymous with speed, and can therefore be utilised to ensure that potentially lucrative investments are not missed. Bridging lenders do however require the commitment and ‘buy in’ from traditional lenders in order for an exit strategy to be achieved.

There has been an identifiable change in the perception of the bridging sector, to a position where it is no long being perceived as ‘last resort finance’, but rather a valuable investment and project facilitating tool. The introduction of a range of new, innovative products, rates and criteria by lenders, has assisted in fulfilling the changing requirements of both brokers and borrowers whilst enhancing the overall bridging ‘offering’. All of these changes have aided the development and growth of the bridging sector, whilst also providing increased flexibility and choice for borrowers to exploit investment opportunities.

In summary, the growth in lending activity in both the bridging and long term mortgage markets is creating a sense of optimism and assurance for further growth to take place throughout 2014. The bridging and long term mortgage sectors will continue to rely upon and support one another in order to achieve the potential market growth available to both.

Steve Woods is head of sales at Bridgebank Capital