First 4 Bridging has revealed it has seen a significant rise in development finance enquiries in the first quarter of 2017.
A quarterly comparison of the first three months of 2017 compared to Q1 2016 shows that development finance case enquiries were up by 72%.
First 4 Bridging claim the tighter lending market in the buy-to-let sector and increase in adviser understanding about the development finance sector are responsible for this increase.
The master broker and specialist distributor say that 16% of its enquiries are now development finance.
This comes as First 4 Bridging set up a development finance department headed up by head of structured finance Elliot Hyames, which focuses on a market they say is “inconsistent and complex”.
Hyames said: “As far as F4B is concerned, 2017 has certainly been the year of growth within development finance.
“It is clear that developers are looking to make the most of their opportunities especially given the low level of housing supply that is coming to market.
“The problem for advisers and introducers with clients seeking such products is that this is a changeable marketplace and one that is often complex, especially when you are seeking to structure the deal in the right way.
“It’s also the case that development finance cases can be quite large– one recent deal we structured was in the region of £40m, and therefore advisers must ensure they get it right.”
