Brokers confident in post-Brexit market conditions

The majority of brokers are reporting stable market conditions in the aftermath of the Referendum, according to MTF research.

Related topics:  Specialist Lending
Rozi Jones
10th November 2016
brexit
"It is an exciting time in the industry at the moment but the opportunities and challenges ahead will make for an interesting end to a busy year."

63% of the 92 brokers questioned thought market conditions post-Brexit remained stable, while a quarter of brokers thought market conditions had actually improved.

After the referendum result, many brokers feared uncertainty would lead to a decline in business volumes but only 12% of brokers surveyed said they had experienced an actual drop in business since the vote. 

During the third quarter of 2016, 13% of brokers experienced a rise in bridging loan volume, while 61% said it remained the same as the previous quarter.

64% of brokers agreed with the Bank of England’s decision to cut the Base Rate to 0.25% to help stimulate the economy following the vote to leave the EU.

Mortgage delays and refurbishment were the main reasons broker’s clients took out a bridging loan in the third quarter both at 29%, followed by development projects at 15%.

Some 30% of brokers surveyed thought the changes to landlord tax relief was the key issue facing the UK property finance sector, followed closely by Brexit at 29%.

Tomer Aboody, Director of MTF, commented: “The Referendum result certainly caused initial market volatility and perhaps some anxiety for brokers and their clients but the positive news is that for many it is now absolutely business as usual.

“It is an exciting time in the industry at the moment but the opportunities and challenges ahead will make for an interesting end to a busy year.”

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