Commercial brokers are resilient against post-Brexit outlook

Almost seven in 10 (67%) commercial mortgage brokers feel confident about the lending environment in 2020 despite the current political climate, according to Shawbrook Bank.

Its ‘Broker Barometer’ revealed that over 53% of brokers felt confident about business growth next year, while 25% have cited a healthy 10%+ increase in business volumes in 2019, compared with 2018.

In addition, 22% have cited a 20%+ rise, up from the 18% who reported the same increase in business volumes last year.

When asked about the top three challenges that they expect their business to face in 2020, brokers cited the impact of Brexit (58%), valuation issues (53%) and lending restrictions (36%). Because of this, 62% of brokers have seen investors diversifying into the commercial property market.

Emma Cox, sales director for Commercial Mortgages, comments: “Despite the broker community showing some concern around the impact of Brexit as the deadline draws near, their confidence in business and the commercial property market for 2020 is still high.”

“As stated in our UK Commercial Property Market report, there is still opportunity for experienced investors to grow and diversify their portfolios, providing they do their homework and seek appropriate advice.”

The barometer results show that, despite a looming Brexit, there is still opportunity to grow, with many brokers reporting an increase in business volumes.

Cox adds: “It’s important to remember that not every commercial property investment will automatically generate great returns, and that doing your homework on potential investments is hugely important.”

“Longevity and sustainability of market are key, and investors who work with experts across the lender and broker spectrum will be best placed to take advantage of future value that presents itself.”