<
p>On the back of the launch of new bridging loans infographic Bridging Trends, B&C caught up with leading industry figures to get their reaction.
The index, which was put together by several bridging lending representatives, looks to publish up to date data on the industry.
Information published by Bridging Trends earlier this month showed that more than £80million in gross bridging lending took place in the first quarter of 2015.
Data also suggested that as much as 69 per cent of those loans were unregulated and that their average term was 11 months.
Now B&C has spoken with some of the bridging market’s most experienced names to learn their opinions on the development of Bridging Trends as well as on some of the findings published.
Chris Whitney, Head of Commercial Finance at Enness Private Clients – Bridging Trends participant welcomed the creation of Bridging Trends and praised its innovation and design.
Describing the report as “the key” industry barometer, Chris said: “From my perspective the finance market is awash with ‘data’ from lenders, surveyors and other industry counterparties.
“All of this is very interesting but it is also very fragmented.
“With the numbers being collated in so many different formats it is hard to draw any conclusions from them, retain much of what is written or indeed read all of it.
“With that in mind, I think that the concept of the ‘Bridging Trends’ project was great but the actual design and implementation is fantastic.
“In addition to this I think previous attempts to show what is happening in the industry has attempted to do the impossible: try and give factual data on the whole industry.
“I think that the Bridging Trend report acknowledges this and takes its information from a number of what it sees key industry sources and pulls together a summary of what is collated. Therefore in answer to your questions.
“I think the Bridging Trends report could well become the key industry barometer and could well be the report people can debate in the pub.”
This view was challenged by Omni Capital’s Bob Sturges, who feels that Bridging Trends offers too limited a scope of the market for the results to be used to embody the industry as a whole.
He said: "As we see it, the fundamental weakness of the new index is its limited scope. Relying on a relatively limited data pool, its conclusions are useful when viewed in purely micro-sectorial terms but unlikely to be definitive in any broader sense.
"We doubt the contributors to the new index - all reputable players of significance - would claim anything different, and are likely to share our view that its output is a useful and accessible way of charting trends in a particular part of the market.
"For a broader, more definitive opinion we prefer the industry statistics produced by the Association of Short Term Lenders.”
Martin Powell, Managing Director of the Heron Way Group believes that when trying to measure the bridging market on a macro scale, there is little point in attempting to gage the unregulated side of the industry.
He said: “I think for the regulated side of the bridging market that these figures are very necessary, but in regards to the unregulated side, I’d say that they were completely unnecessary.
“Showing regulated lender’s figures is very important because it shows the increased costs of borrowing on certain parts of the community.
“But in relation to unregulated lending, there are so many small companies that we don’t even know exist carrying out loans which makes it very difficult to guarantee this data.
“If a small unregulated firm were to carry out a £20 million loan no one would know as they don’t have to publish their figures.
“For that reason I see no real benefit of publishing non regulated lending data.”
Last week, Bridging Trends became the latest analytical bridging finance research tool to join the market after the AOBP developed its own index, neighbouring the likes of West One Loan’s Bridging Index.
On the back of the new bridging finance infographic's launch, B&C caught up with leading industry figures to get their reactions….
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