Industry experts express optimism at the Specialist Lending Expo.
- Lending and housing markets predicted to rebound by 2025.
- Economic stabilisation with lower interest rates anticipated.
- Specialist lending demand may surge with 10 to 14 million borrowers.
- House price resilience supports confidence in future growth.
The Specialist Lending Expo provided a platform for industry leaders to share their positive expectations for the lending and housing markets. With projections suggesting a rebound by 2025, there is hope for a resurgence in borrowing and property activity. The sentiment was described as optimistic, with speakers highlighting potential economic stabilisation.
Rob Jupp, CEO of the hosting group, anticipated a more favourable and profitable year in 2025. There is rising demand for specialist lending, with predictions indicating a potential market of 10 to 14 million borrowers. Feedback from brokers reflected a more confident stance compared to the uncertainties that marked 2023.
Darren Winder of Lazurus Economics and Strategy predicted that interest rates might decrease, provided the economy aligns with the Bank of England’s forecasts. He noted that the base rate, after climbing rapidly, is likely to settle between 3% and 3.75%, providing relief for those refinancing or entering the housing market.
Winder also projected a reduction in inflation concerns, expecting it to stay below the Bank’s 2% target by 2025. This anticipated cooling of inflation could lead to more favourable refinancing conditions, as borrowers might secure better deals over time.
The housing market’s unexpected stability, with transaction levels reverting to pre-pandemic norms, further bolsters confidence. Current data shows monthly transactions averaging around 80,000, pointing towards a strengthening of overall mortgage lending and housing activities.
However, experts caution about potential challenges due to an imbalance in loan and deposit growth. While loans grow by only 1%, deposits are expanding by 5%, which could affect the lending environment. Despite these challenges, stable base rates and a surge in specialist product demand position the industry for growth.
With preparations underway, the lending market seems poised for a promising phase ahead.
