What are the most popular types of specialist property investment in the current market?

Refurbishments, HMOs and MUFBs have been the most popular types of specialist property investment in the last three months, according to Castle Trust Bank.

Broker research carried out by the lender found that refurbishment was the number one specialist property investment, with nearly 40% of brokers saying it was the top choice for their clients.

Following closely behind were investments in HMOs and multi-unit freehold blocks (MUFBs). Despite the high profile of holiday lets, this was the least popular type of specialist property investment over the last quarter according to brokers.

When it comes to choosing a bridging lender to finance their clients’ specialist property investments, most brokers opt for speed of decision first, whilst certainty of decision is the second biggest consideration. Rate is third on this list for brokers when it comes to reasons why they choose a bridging lender.

Anna Lewis, commercial director at Castle Trust Bank, said: “The Castle Trust Pulse survey provides a snapshot of the trends and challenges brokers are currently experiencing in the bridging market, and the first set of results make for interesting reading. Landlords are increasingly looking at ways they can increase their returns and property refurbishment is the most common way they choose to do this.

“When it comes to choice of lender, speed and certainty are at the forefront for brokers, with rate having less prominence. This perhaps reflects the recent environment of uncertainty and frequent rate rises, where speed of decision has often made a significant impact on the rate a client has been able to achieve. However, in a competitive market, speed and certainty have always been crucial in bridging, enabling investors to respond quickly to market opportunities and build their portfolios.”