What could the large, complex bridging and development market look like in 2022, and what did we learn in 2021 to help make it a success?
Director of our Structured Property Finance team, Tom Madden, takes a look back on 2021 and the year ahead for complex lending.
Looking back on 2021 –
What were the market challenges for you and your team?
The uncertainty in the market. For development acquisition sites, this has been driven by the increasing costs and supply of both materials and labour throughout the year due to Covid and Brexit to say the least.
For commercial property, what do the short term and long term markets look like with the various states of pandemic lockdown and the changing needs of our employers and workforces. In turn this may have led to some opportunities in the market but the level of mid market transactions has been a little light compared to previous years.
What were the successes?
During the year we helped dozens of specialist brokers place their larger complex deals and lent to over 50 clients on loans from less than £1m right up to £23m. We’ve lent on substantial planning play sites, large investment portfolios, completed and part completed developments and to complex borrowing structures just to name a few examples.
What is the thing you are most proud of?
Strengthening our relationships with our key brokers and clients. We have clients that we’ve lent to on more than half a dozen occasions already in just 18 months as a new team and it’s the feedback from these types of relationships that helps us to continually improve what we’re doing.
Looking ahead to 2022 –
What do you expect the market to look like in 2022?
Based on how busy the market has finished 2021 it does feel like 2022 will be a positive step in the right direction.
The amount of capital in the UK specialist real estate market continues to increase and I can’t see 2022 bucking this trend. This has led to enormous competition between lenders of all shapes and sizes and for all types of finance requirements.
For large bridging loans, which our team specialise in, there are still only a few lenders in the market who can be trusted to always deliver on their word and I’m glad to say that LendInvest is certainly one of those.
What might the challenges be?
As has been the case for at least the last few years it’s the continued uncertainty across the whole economic outlook. Property Developers and Investors in the UK are always looking to push forward with positive medium/long-term views whatever the short-term concerns but these do seem to be coming from all angles at the moment.
What’s one thing you hope to achieve?
We have steadily grown our Structured Property Finance team lending over the last 18 months and hope to grow this more rapidly during the next 12 months and to expand the product offering and team.