Against the backdrop of war in Europe and global economic challenges, it feels jarring to talk about success.

But my personal experience, that of Roma and the wider bridging finance sector are at odds with what’s been happening at home and abroad.

This year has been amazing for our business. The last quarter has been record-breaking both in terms of sales and redemptions. We aren’t seeing any signs of a reduction in demand and our funding lines are robust.

I’m acutely aware that this stellar growth is happening against a global backdrop that is a nightmare, with Russia’s invasion of Ukraine, soaring inflation, and rising interest rates worrying many borrowers.

There is a lot of bad news, but it’s not having the impact on the property finance sector that you might expect. Put simply, the UK still needs more homes to be built and demand remains strong.

Yes, rates are up sharply but we knew they couldn’t stay at 0.1% forever. I think 3% is where Bank Rate will settle as an average over the next decade.

Bridging boom

Bridging lending is up this year with a record £1.4bn lent in the third quarter, according to the latest figures from the Association of Short-Term Lenders. There’s still a lot of money around, it’s just more expensive.

At Roma, we’re seeing strong levels of demand for refurbishments, and plenty of commercial-to-resi conversions. We’ve also noticed a rise in co-living among groups of friends and family, particularly in the bigger cities, and the shape of our towns and cities is changing as retailers move out.

•   What does the specialist finance industry need in 2023 and beyond?
•   BoE interest rate jumps to 3.5% - industry reacts
•   Inflation drops to 10.7% and average house prices hit £296,000 — industry reacts

But it’s the residential sector that has been huge for us this year, with record demand.

Challenges loom

The global backdrop and the UK economy are clearly the biggest challenges – the bridging sector isn’t immune to the wider world.

It looks like we’re heading for recession and house prices will likely fall 5-10% next year.

Some areas of the commercial sector – such as office space, pubs, restaurants, and big retail sites – are still struggling and will continue to do so in 2023.

We have to be realistic about the market, but there’s plenty to be positive about too.

Looking ahead

Roma has achieved significant growth in 2022. Next year we need to be more innovative as we embark on the next stage of our strategy.

We’re planning to launch desktop valuations and in-house legals, as these are the areas where delays are currently out of our control due to external suppliers. We plan to bring them under our control.

We also want to launch some new products that meet the needs of the current market, and we’re flexible enough to get them out quickly.

On a personal level, I’ve learned not to get bogged down with the news, and to limit what I watch. It can make you feel negative about what’s going on around us and worried about the future. But when I focus on the performance of the business and the numbers we’re doing, I feel much more positive.

Let’s focus on what we can control. That isn’t the war in Ukraine or spiralling inflation. For me, it’s about supporting the sales team, going out and working with brokers and focusing on growing Roma’s market share further next year.