James Bloom, CEO at Regentsmead, said new entrants to the market could prove dangerous to the industry if they don’t offer suitable products.

He also suggested that a new entrant’s desire to offer something unique could be risky.

James told Bridging & Commercial: “There will certainly be new entrants into what is already a heated and highly competitive market. For a new entrant to get a foothold in the industry they are going to need to have a unique offering which is going to be very tough given the huge amount of competition that already exists.

“This can lead to dangerous terms being offered in terms of cheaper rates and higher LTVs, both signs of a heated market.

“Competition is great and should be embraced, but new entrants could be coming in close to the top of the market and should be wary of how they try to get market share.”

There are several other factors at play, however, that could put off any potential new lenders.

Scott Marshall, Director at Roma Finance, said: “They will be entering an industry that is already well catered for by a number of highly professional and experienced lenders who have competitively priced products and expert staff. 

"There are a few other things too that might deter any newcomers like the expected rise in interest rates muted by the Bank of England which could make the cost [of] funds higher, and therefore less attractive; and the increased taxation of the buy-to-let sector will see many lenders taking a different approach in this area. 

"On the positive side, the nation needs lots of new houses which is a big opportunity for lenders for both new builds and property conversions and renovations."

Despite the risks, John Waddicker, Director at Positive Commercial Finance, said he would have no problem working with a new entrant, if they had the right credentials.

John told B&C: "As a specialist broker we would be interested in working with new lenders if they provided something that was genuinely new, in terms of underwriting, service or products.

“There are always new situations arising in complex development cases which often require very niche lending criteria and flexible underwriting to resolve.

“It would also be important that the staff at the lender had a proven track record in commercial and development cases, as to have real credibility in the market they would have to fully understand the industry.

“However, there are plenty of opportunities for lenders as the commercial finance and new build developments are on the up, so now is as good a time as any to launch a new lending business to service these markets."

A few market heavyweights believe some lenders who had previously been operating under the radar could become more prominent in 2016.

Stephen Burns of broker Adapt Finance, said: “Both peer-to-peer lenders and previously asset based lenders made an impact and are expected to grow into 2016.

“We expect there are lenders currently in the wings (those who are active in the sector, but through brokers have remained anonymous to the market place) [who] will step into the limelight.

“Choice isn't a bad thing and the lenders we work with each have their own unique selling proposition. All we'd say is, to enter into the market, you need to offer something more than just promises and a cheap rate.”