The opportunity bridging finance offers in a regenerating North West

Apply quickly online, get Heads of Terms in minutes, and skip valuations with AVMs by applying through the bridging portal.
By Waqar Khan, Business Development Manager for the North West
Much has been made over the last few years of the meaning of the phrase ‘levelling up’, but with further funding announcements made at the start of this year, we’re starting to see the political will to match the talk.
What all this talk has missed, however, is that the North West has been an area on the up for a while.
Outside of city hubs like Liverpool and Central Manchester, which have seen an influx of new businesses established there as people move out of the South East, Greater Manchester is seeing plenty of investment as well.
Stockport and Warrington in particular are receiving an influx of investments for regeneration, which has led to an increase in desirable areas, especially as the metro link out of Manchester continues to expand.
In the current financial climate however, what challenges are being posed to this agenda, especially to property investors looking to provide the housing a regenerating region needs?
What a declining market means for property investors
Funnily enough, as a bridging lender, we’re quite bullish on what bridging finance can offer brokers and their clients looking to the region.
In a challenging economy on the cusp of a recession, raising funds becomes a lot more challenging, so bridging becomes more useful to investors.
Whether it is at the start of the deal for quick acquisitions, providing extra funding for projects hit with delays or refinancing while properties are sold, bridging suits investors looking to meet local housing needs.
Personally across my desk as we navigate the market, we’re seeing lots of what we call ‘flow bridging’ deals, ably supported by the speed, technology and expertise on hand through the bridging portal, but also a growing number of more complex deals.
But one area we’ve seen an area of growth in bridging applications is from landlords. Part of this is regulatory; landlords have to meet upcoming EPC requirement changes, and bridging against the value of their portfolio is supporting the larger landlords to make the necessary upgrades.
Over the past few months as well – but less so since rates have begun to creep down – we saw landlords turn to short-term lending as an alternative in a high-rate environment as they looked to wait and see where the market landed.
Big developments show confidence in the region
As previously mentioned, city hubs like Manchester and Liverpool are seeing more money pour into them. Planning for a new skyscraper in Manchester has been approved with over 70 floors. The building will have 642 apartments as well as a sky pool, yoga studio, lounge, co-working spaces and a gym.
Obviously these aren’t the type of deals we’d be looking to fund, but what it shows is the scale of ambition in the region and the number of people crying out for high-quality homes.
Despite the money coming to the area, the potential for high yields – be it rental or selling – is much greater here than in the south.
Investors are looking to properties with potential, acquiring them with a bridge, refurb and then look to either sell or let out. With the opportunity the area presents, we can see people looking there more and more.
Apply quickly online, get Heads of Terms in minutes, and skip valuations with AVMs by applying through the bridging portal.