< p>West One Loans reports that bridging loans have provided investors higher annual returns than other alternative investments such as fine wine and art.

Private investors in short term secured loans saw a 10.5% return in the 12 months to 2015, which is more than three times more than the 3.1% return from collective art and 2.3% return for fine wine.

It also compares with negative returns for both gold (-4.7%) and the FTSE All Share Index (-2.0%).

Stephen Wasserman, Director at West One Loans, said a lot of private investors had moved to bridging loans had become fatigued by the sales process of other investment items at auction.

“They’ve been stung by commission that has to be paid to big houses and they’ve been exposed to the associated pricing risks: starting the sale too high puts buyers off; starting low risks not reaching the desired price,” said Stephen.

“Once you throw in the threat of fraudulent investment firms posing as investors in collectibles, liquidity risk, and exchange rate risk – the case for bridging becomes even clearer.”

Duncan Kreeger, Director at West One Loans, added: “Bridging loans consistently offer investors greater returns and stability than the likes of gold, wine and art. 

“We expect this trend to endure as we continue to work closely with intermediaries to make sure that they are aware of the potential of the bridging market.”