But we all know about the lack of new build housing. The credit-crunch and associated property price correction hampered property investment. Many of the biggest names in development have seen their profits tumble.
New build may not be the only answer to the problem.
Currently, there are plenty of low quality homes in very poor condition on valuable land. Bringing back into use Britain's 300,000 long-term empty private sector homes or renovating Britain's 37,000 empty council homes before selling them on would help. If we aren’t building a lot of new homes, we can at least improve the condition of the existing stock.
The government’s recent planning reforms might increase the scope for such projects, but whatever’s on the cards, the question on people’s lips is one of finance. Bridging can get small scale projects like this off the ground.
Using a bridging loan, a landlord can buy a property with no bathroom or kitchen (which high street lenders never lend against) and renovate it. Given some time and money, it’s much easier to secure a mortgage on the property before renting it out.
Bridging can help solve the bottleneck, creating employment for those carrying out the work, increasing the value of the property and rewarding investment, and improving the condition of the UK’s housing stock at the same time. All these factors are good news for the country. Investors and brokers who think more imaginatively will be the ones who contribute to, and benefit from, the economic recovery.
