Bridging Finance Solutions has seen a significant upturn in the number of customers looking to finance and develop Houses of Multiple Occupation (HMO).
Compared to the same period last year, the firm has seen a significant increase in this market.
BFS are typically assisting clients with both property purchase costs and subsequent refurbishment works, transforming the property into single living accommodation units with ensuite bathrooms and communal areas.
Houses targeted by developers are often in need of significant modernisation as well as structural repairs to make the necessary changes, hence the demand for further funding.
Jeanette Jones, Business Development Manger at Bridging Finance Solutions said: “There has been a sharp increase in the number of HMO developers which makes sense given the changes to income support. The bedroom tax, which focuses on under occupation, supporting those living alone with no more than one bedroom, has undoubtedly spurred on the demand.
“In many cases we have been able to bridge against the value of the property, enabling the owner to carry out the necessary works and remortgage once complete.”
Jeanette added: “This development is typical of the type of project that we can help finance as many high street lenders simply won’t lend against a house in a poor condition or requiring refurbishment where we will bridge that gap through short term funding.”