Confidence among brokers in the future of short-term lending is at its highest level in years, with seven in 10 expressing optimism about growth in the sector over the next 12 months, according to new research from Black & White Bridging.

The specialist lender’s latest broker sentiment survey reveals that 72% of intermediaries are positive about the outlook for short-term finance in 2025. Of these, 35% described themselves as “very positive” and 37% as “positive”, while only 7% held a negative view. A further 14% said they were “neutral”.

Expectations of increased deal flow underpinned the upbeat outlook. Nearly three-quarters of brokers (74%) predicted demand for bridging loans would rise in the year ahead, with just 2% anticipating a fall. In terms of volume, brokers forecast an average increase of 16% in short-term lending transactions, with 14% expecting growth of more than 20%.

Refurbishment finance emerged as the product area brokers expect to be most in demand, cited by one-third (33%) of respondents. Commercial bridging loans were selected by 21%, while 19% each pointed to development exit and residential bridging as key growth areas. Auction finance was forecast to lead demand by 7%.

Damien Druce, chief operating officer at Black & White Bridging, said: “The overwhelming optimism of brokers highlights not only the resilience of the short-term lending market but also its potential. With 74% of brokers anticipating a rise in bridging loan demand – and refurbishment products leading the charge – it’s clear brokers see significant opportunities ahead. We’re committed to supporting this growth with innovative products and tailored solutions to meet the diverse needs of borrowers in 2025 and beyond.”

The confidence expressed by brokers is also reflected in current trading performance. More than half (53%) of respondents said they are seeing more enquiries than a year ago, while only 14% reported a decline. In aggregate, brokers said bridging enquiries had risen by 19% over the past 12 months.

Druce added: “Current robust business volumes confirm the market is thriving and suggest these forecasts are not pie in the sky stuff. The surge in current trading – with 53% of brokers reporting higher enquiries over the course of the last 12 months and, overall, a 19% rise in bridging loan volumes over the past year – offers a solid bedrock for optimism about the future. Brokers have every reason to be confident in the opportunities ahead.”

In addition to gauging market expectations, the research also sought brokers’ views on what matters most when selecting a bridging lender. Transparency and certainty of outcome topped the list, chosen by 58% of brokers. Close behind were direct access to decision-makers (56%) and speed (53%), with an efficient process (44%), relationship strength (37%) and reputation (30%) also seen as important.

Brokers also called for greater clarity around lending criteria. Nearly half (48%) said lenders should present criteria using a clear format such as ‘from XX, up to XX’. One respondent commented: “Lenders should set pricing for LTV and property type”, highlighting the desire for consistent and open communication on terms.

Another broker stressed the importance of client outcomes: “I’m driven by achieving the best possible outcome for my client; what that looks like varies from client to client and deal to deal.”