A recent survey by Vantage Private Finance has revealed that while confidence in the property market is growing among professionals in the industry, the vast majority believe access to finance is still holding them back.
A staggering 87% of property professionals questioned by Vantage Private Finance believe that they would undertake more projects if they had access to better or more suitable finance packages.
The current restrictions around access to finance sit at odds with growing levels of optimism in the market – 77% of landlords and property developers surveyed believe that market conditions are improving and a further 15% believe that they are remaining steady.
When asked about the most pressing challenges facing them, finance was the word on many property professionals’ lips. More than half (51%) of those questioned named finance-related elements as the biggest issue.
Challenges ranged from obtaining finance (36%) to the cost of borrowing (9%) and LTV (6%). Finding property or sites was also high on the agenda, with 31% naming it as their biggest obstacle.
While 96% of respondents were landlords or property developers, only 13% of those asked had used bridging finance before, suggesting that the benefits of this increasingly popular and versatile form of lending has yet to reach many professionals working in the industry.
Lucy Hodge, Director of Vantage Private Finance said:
“These results spell out the picture for property professionals very clearly. It’s really positive to see that confidence in the property market is growing significantly, but there’s a critical factor holding many property professionals back – access to finance.”
“Many property professionals will be familiar with the automated systems used by some of the larger lenders, which do not facilitate more complex situations, and in some cases offer very restrictive lending criteria. The good news is that there is a huge array of specialist lenders beyond the high street that are working hard to help property professionals grow and expand with more tailored, flexible products.”
“The challenge is often knowing where to look. Working with a commercial mortgage broker can help property professionals to find the best product and lender for them – whatever their requirements.”
For further information please visit: www.vantageprivatefinance.co.uk
About Vantage Private Finance:
· Vantage Private Finance questioned 74 respondents at two finance shows in late 2013 at the Landlord Shows
· Vantage Private Finance is Vantage Private Finance is a financial intermediary with the expertise to help property professionals with their borrowing requirements – from investment mortgages to development finance