<
div> The latest B&C poll results are in and brokers have deemed FCA regulation to be the bridging industry's biggest challenge in 2014.
The latest B&C poll results are in and brokers have deemed FCA regulation to be the bridging industry's biggest challenge in 2014....
B&C’s reader poll showed that 54.5 per cent of respondents felt the regulation was far more testing for the industry, than that of high street banks making a gradual return in the recovering economy.
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Commenting on the statistics, James Bloom, Chief Executive of Regentsmead, which continues to operate as an unregulated lender, said: “It’s no surprise that FCA regulation is perceived as the biggest issue in the 2014 bridging market. As the economy pics up and the market becomes more saturated, lenders are even more incentivised to deliver a high quality service in order to retain their client. It can be argued that the new regulations are seen as a hindrance to delivering a great service and lenders are concerned how these new regulations may affect their internal processes.”
Also commenting, Bob Sturges, Head of Communications at Omni Capital, said: "It is understandable that a majority of respondents have identified FCA regulation as the major challenge facing bridging this year. Change on this scale is always unsettling, and its case is not being helped by the ambiguity that still surrounds the process and its precise final form.
"That said, it should be remembered that a considerable chunk of short-term lending will remain non-regulated. For lenders and brokers active in this area, bridging will continue to offer lucrative and attractive opportunities.
"However, it would be a grave error to assume that non-regulation is a blank cheque for cavalier, irresponsible behaviour; and I doubt any serous player will see it that way.”
The second greatest challenge to the market voted for was that of high street banks, which gathered 18 per cent of the vote, inferring that many are keeping their eyes on market conditions on the high street and also ears to the ground of movement into the industry.
According to the poll, turnaround times, inexperienced solicitors and continued bridging misperception all collected 10 per cent each of the overall votes.
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