New figures reveal that development finance lending saw an increase of 49.8% over the last year.
The National Association of Commercial Finance Brokers (NACFB) has just released data that shows its brokers wrote £1.8bn of new development finance business between 1st July 2015 and 30th June 2016. That is almost a 50% increase on last year’s £1.2bn.
Growth was seen across a wide range of sectors: new commercial mortgage lending grew 54.8% to £5.3bn, while bridging finance increased 74.6% to £1.3bn. NACFB brokers also witnessed a 39.1% rise in business written for new buy to let.
Adam Tyler, chief executive of the NACFB, said: “It’s been a phenomenal and record-breaking year across the commercial finance sector.
“With the UK’s SME community showing a real appetite for growth, despite the uncertainty of Brexit, we have seen small business lending at levels above even those registered before the financial crash.”
In contrast, alternative forms of lending saw a decline, with business written for new types of finance, such as crowdfunding and peer-to-peer lending falling by 14.4% to £725.5m.
“Interestingly, the figures show that there has been a significant switch by small businesses back to traditional forms of lending,” continued Adam Tyler
“The alternative finance sector has grown at such a pace that it was inevitable that [that] rate of growth couldn’t be sustained.
“Peer-to-peer will always have its place, but alternative forms of funding are no longer the only future; they are just one of many forms of finance available to small- and medium-sized businesses.”