The property receivership specialist experienced a 40% rise in the number of appointments and a 200% increase in the value of the properties under its control to £300m.
Over the past year, bridging loans have accounted for a higher percentage of these cases.
CG&Co claimed that the surge in the number and value of these appointments was due to tough economic trading conditions, the rapid growth of the bridging sector and its enhanced presence in the space.
- B&C roundtable: Is the second charge bridging market growing?
- 'This month the housing market has ignited,' says independent estate agent
- Boris bounce: understanding the property market's reaction to the election result
Daniel Richardson, a partner at CG&Co (pictured above), said: “The poor performing property market has resulted in an increasing number of defaults in the bridging sector as borrowers find themselves unable to achieve their exit plans, either by sale or refinance.
“In addition, the bridging sector is growing with a constantly increasing number of borrowers turning to this style of funding over the past 12 months.
“As a result, the volume of defaults across the market has shown a corresponding increase.”
Daniel predicted that the bridging market would be “busier than ever” over the next 12 months, as borrowers continue to seek quick, competitive property finance.
“It is also to be hoped that the property market continues to pick up throughout 2020, which should enable borrowers to implement refinancing as confidence grows and valuations improve, or indeed assist in disposal strategies in recovery situations,” he added.
Leave a comment