The average loan term for a bridging product has extended to one year — reflecting the longer sales period developers are currently facing — according to Avamore Capital’s latest market sentiment survey.

The survey gathers conclusions from its current broker and service provider partners and aims to highlight the challenges faced in the development market, shedding light on emerging opportunities.

Key reported metrics include the average LTVs, rates and loan terms across the first half of this year for development and unregulated bridging.

Other findings include the spread of fixed and floating rates available in the market — with 61% of respondents reporting seeing more fixed rates for bridging and 58% for development — rate sensitivity did not seem as important when compared with the certainty of completion in 2023.

The report also highlights circumstances that have contributed to a slowdown in the development finance market, including increases in development costs; material delays; reduced property valuations; delays in obtaining planning permission; and increased interest rates.

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D’mitri Zaprzala, CEO at Avamore, commented: “It’s clear it’s been challenging across the board but what’s exciting are the opportunities that have emerged from this. While it could be easy to feel like there are limited options, this really is a time when the specialist finance industry can thrive.”