Savvy property developers know that the best time to buy land or develop property is… yesterday. With that in mind, many professional developers in the industry are looking for a fast, flexible loan that allows them to invest in a property quickly, and which can be paid back in a way that suits their financial situation.

GIC Capital have been supplying property developers with bridging loans for years, ensuring that the property development industry remains active, dynamic and diverse.               

Bridging loans of the past

Traditionally, bridging loans have not had the best reputation. In the past, they were provided to borrowers who needed to buy at a moment’s notice but did not have enough time to arrange their financing. Bridging loans came to be known as inflexible and expensive, with unfair loopholes and severe penalties for late repayments.

We and other companies that provide financial solutions to property developers have been transforming this reputation over the years by changing these unfair and unrealistic practices. Bridging loans in the 21st century have evolved.

Bridging loans today

Today, property developers are finding the perfect solution to financial deficits in bridging loans. They’re ideal for buying a house or securing planning permission on a plot of land. In today’s market, it’s more important than ever that we focus time, money and energy into creating luxury and affordable housing alike, and a bridging loan can be great for quick buying of a development site that already has planning consent.

Moreover, if you’re planning a refurbishment of a property to sell on to a new family or the next generation of house buyers, a bridging loan offers a quick and secure fix. Likewise, a bridging loan can be used when refinancing to a buy to let mortgage or commercial mortgage.

Bridging loans of today are a property developer’s dream, giving you the opportunity to use your time and skills to develop beautiful homes and spaces.

GIC Capital’s bridging loans

We’ve worked hard to revolutionise bridging loans and ensure that they serve property developers as effectively as possible. Our bridging loans offer a broader, more flexible way of financing property development, and the criteria we ask that our customers meet is just the bare essentials. You can find out more about GIC Capital’s bridging loans here.                      

It has recently been reported that the affordable home crisis in Ireland has reached breaking point. Some have even speculated that it’s ‘the social issue of our time’ but the sad reality is that the lack of affordable homes isn’t just affecting Ireland; it’s a widespread issue throughout the UK.

What has caused such a crisis?

Recent reports on the UK government’s housing plan between 2015-2020 suggest that almost every target set has been missed thus far, leading some to believe that “by 2020 homeownership will be an 'impossible dream' for those not already on the ladder”. It has been estimated that the need for housing in England alone is currently two to three times higher than  the current supply.

It is thought that the current ‘dysfunctional’ housing market is a direct result of local governments stepping away from the building of new houses, leaving the responsibility in the hands of not-for-profit organisations, which are struggling to provide thanks to a reduction of the capital subsidy.

What is needed?

The country is in need of 200,000 to 300,000 new properties - a margin not seen since the 1970s - which presents a demand for property developers to step in, though some doubt whether building more homes will provide a solution. Property developers face a challenge due to constraints in the planning system, as well as a shortage of available land. Many areas employ strong policies to protect green spaces, which have been highly effective in preventing urban sprawl and, in light of other social challenges, such as climate change and food security, it seems impossible to find a one-size-fits-all solution.

Can the crisis be solved?

However, a solution must come. London Mayor Sadiq Khan is looking to increase the supply of lower-cost homes and has assured property developers that private development proposals that have at least 35% affordable units will be fast tracked through the process by the capital’s council. Whether this scheme will prove effective, or be adopted by other councils throughout the UK is still very much up for debate, but the effects on property developers would be both positive and negative. For developers willing to offer affordable housing, it looks like their schemes will be more strongly favoured by councils, but with some developers unwilling or unable to offer such proposals, it’s clear a compromise will have to be reached somewhere along the line.