Table of Contents
Executive Summary
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- Market size
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- Figure 1: UK bridging loans market value, in aggregated loan balances, 2011-2015, (£ billion)
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- Figure 2: UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2011-2015, (£ billion)
- Market trends
- Market factors
- Regulation changes yet to affect large proportion of market
- Continued struggles by mainstream lenders to provide finance to SMEs and legislative changes have peaked bridging lenders’ interest
- Property market continues offer greatest opportunity for industry growth
- Industry structure
- Forecast
- Aggregated loan balances are forecast to increase by 82% to 2020, albeit at a diminishing annual growth rate
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- Figure 3: Forecast UK bridging loans market value, in aggregated loan balances, 2016-2020, (£ billion)
- A stable business environment and a gradual slowdown in the property market will support commercial and development loans
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- Figure 4: Forecast UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2016-2020, (£ billion)
- What we think
Key Insights
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- Which factors have led to the industry emerging as a serious competitor to mainstream lenders?
- How have changes in lending regulation affected the bridging industry?
- Are P2P lenders a credible threat to industry development?
- What will be the key market drivers?
Introduction
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- Definitions
- Methodology
- Abbreviations
- Market positioning
UK Economy
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- Key points
- Overview
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- Figure 5: UK GDP, 2004-2015 Q1, (% quarterly growth and GDP in £ billion)
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- Figure 6: Quarters after GDP peak, 1979, 1990 and 2008, (Number of quarters and GDP as % of pre-downturn peak)
- Inflation
- Interest rates
- House prices
- Consumer spending
- Manufacturing
- Business investment
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- Figure 7: UK GFCF 2003-15, (£ million)
- Imports
- Exports
Market Factors
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- Key points
- Output growth slows at the start of 2015
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- Figure 8: GDP growth rate, 2012-15, (% change on previous quarter)
- Figure 9: GDP growth rate, 2012-2015, (% change on previous quarter)
- Property market continues to offer greatest opportunity for industry growth
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- Figure 10: Number of residential property transactions, 2010-14, (seasonally adjusted)
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- Figure 11: Number of residential property transactions, 2010-2014, (Number, seasonally adjusted)
- Figure 12: Number of non-residential property transactions, 2010-14, (Number, seasonally adjusted)
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- Figure 13: Number of non-residential property transactions, 2010-2014, (Number, seasonally adjusted)
- Misconceptions about bridging finance continue to restrict development
- Continued struggles by mainstream lenders to provide finance to SMEs and legislative changes have peaked bridging lenders’ interest
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- Figure 14: Company insolvencies in England and Wales, 2010-14, (Number)
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- Figure 15: Company insolvencies in England and Wales, 2010-2014, (Number)
- Associations have helped promote the industry’s position in the alternative finance market
- Regulation
- The EU Mortgage Credit Directive
- Buy-to-let mortgages
Market Size
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- Key points
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- Figure 16: UK bridging loans market value, in aggregated loan balances, 2011-2015, (£ billion and % annual change)
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- Figure 17: UK bridging loans market value, in aggregated loan balances, 2011-2015, (£ billion)
- Market segmentation
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- Figure 18: UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2011-2015, (£ billion)
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- Figure 19: UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2011-2015, (£ billion)
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- Figure 20: UK bridging loans market value segmentation, in aggregated loan balances and by loan purpose, 2015, (£ billion, % of bridging loans)
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- Figure 21: UK bridging loans market value segmentation, by loan purpose, 2015, (% of bridging loans)
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- Figure 22: AOBP market report, by lender and loan business volume, November-December 2012, (% of total cases, % of total completions and £000)
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- Figure 23: AOBP market report, by lender and loan business volume, November-December 2012, (£000)
Market Trends
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- Key points
- Regulation
- Threat of other emerging alternative lenders
- Technology advances
- Property boom drives growth
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- Figure 24: Halifax and Nationwide House Price Index, by annual change per quarter, Q1 2007-Q2 2015, (%)
- Figure 25: Halifax and Nationwide House Price Indices, by annual change per quarter, Q1 2007-Q2 2015, (%)
- Other trends
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- Figure 26: AOBP bridging market trend report, by sector, average loan-to-value, June 2013-June 2015, (%)
- Figure 27: AOBP bridging market trend report, average loan-to-value, June 2013-June 2015, (%)
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- Figure 28: AOBP bridging market trend report, average interest rate, June 2013-June 2015, (%)
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- Figure 29: AOBP bridging market trend report, average interest rate, June 2013-June 2015, (%)
- Figure 30: ASTL gross mortgage lending estimates, 2012-2015, (£ million and %)
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- Figure 31: ASTL gross mortgage lending estimates, 2012-2015, (£ million and %)
Industry Structure
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- Key points
- Industry development
Company Profiles
Alternative Bridging Corporation
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- Figure 32: Financial analysis of alternative bridging corporation limited, 2010-2014, (£ 000)
- Company outlook
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Amicus Finance (formerly Capital Bridging Finance)
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- Figure 33: Financial analysis of Amicus (formerly Capital Bridging Finance), 2010-2014, (£ 000)
- Company outlook
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Boost Capital (formerly Business Financial Services (UK))
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- Figure 34: Financial analysis of Boost Capital (formerly Business Financial Services (UK)), 2012-2013, (£ 000)
- Company outlook
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Commercial Acceptances
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- Figure 35: Financial analysis of Commercial Acceptances, 2010-2014, (£ 000)
- Company outlook
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Dragonfly Property Finance
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- Figure 36: Financial analysis of Bridgeco Ltd, 2009-2013, (£ 000)
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- Figure 37: Financial analysis of Fern Trading Ltd, 2011-2014, (£ 000)
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- Figure 38: Financial Analysis of Rednel, 2013-2014, (£ 000)
- Company outlook
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Goldentree Financial Services
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- Figure 39: Financial analysis of Goldentree Financial Services, 2010-2014, (£ 000)
- Company outlook
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Hope Capital
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- Company outlook
Lancashire Mortgage Corporation
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- Figure 40: Financial analysis of Lancashire Mortgage Corporation , 2010-2014, (£ 000)
- Company outlook
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MTF Finance
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- Company outlook
United Trust Bank
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- Figure 41: Financial analysis of United Trust Bank, 2010-2014, (£ 000)
- Company outlook
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West One Loans
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- Figure 42: Financial analysis of West One Loans, 2009-2013, (£ 000)
- Company outlook
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- Figure 43: Profiled companies’ combined turnover, 2010-2014, (£ million)
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Forecast
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- Key points
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- Figure 44: Forecast UK bridging loans market value, in aggregated loan balances, 2016-2020, (£ billion and % annual change)
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- Figure 45: Forecast UK bridging loans market value, in aggregated loan balances, 2016-2020, (£ billion)
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- Figure 46: Forecast UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2016-2020, (£ billion)
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- Figure 47: Forecast UK bridging loans market value segmentation, in aggregated loan balances, by sector, 2016-2020, (£ billion)
- Mixed prospects in property market for lenders
- Favourable conditions for rival alternative lenders threaten potential industry development
Further Sources and Contacts
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- Trade associations
- Trade magazines
- Trade exhibitions
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