House building activity increases
According to HBF's latest Housing Pipeline report planning permission was granted for over 52,000 new homes in Q4 2013, the highest quarterly total since Q1 2008.
In 2013 close to 175,000 planning permissions were granted in England – the highest annual figure since 2007.
The report shows:
- Q4 permissions granted were up 19% on Q3 and 17% on Q4 2012
- 2013 permissions were up 24% on 2012 and 51% on 2011
- 885 sites were granted approval, the highest quarterly total since Q1 2008
- 51% more permissions were granted in 2013 than at the ‘trough’ in 2011.
As a result there may be an increase in homebuyers looking at using bridging to finance such a purchase.
When buying property off plan, standard mortgage lenders are unlikely to lend on it and the buyer must then source a different funding option such as bridging. Then, once built, they are able to switch to a high street lender.
For more information about bridging finance, download our free guide.
Content correct at time of publication