Almost two-thirds of bridging lenders are upbeat about the long-term prospects of the UK economy, compared to just 50 per cent when the survey was previously carried out by the Association of Short Term Lenders last June.

The sentiment poll found that lenders are split on the immediate prospects for their own businesses, with 41 per cent saying they expect the turnover of their business to grow in the next six months against the same percentage who think their turnover will shrink.

Similarly, 41 per cent of lenders expect the turnover of the bridging sector as a whole to grow in the next six months, while 36 per cent believe it will shrink. 

However, 57 per cent of lenders expect competition in the sector is likely to decrease and only 5 per cent predict an increase.

 When it comes to assessing the outlook for house prices, 43 per cent of bridging lenders believe they will fall in the next six months, with just 24 per cent expecting a slight increase.

ASTL chief executive Vic Jannels says: “2020 has been a year like no other, but short-term mortgage lenders have demonstrated their resilience and ability to adapt in challenging circumstances. 

“It is particularly encouraging that so many of our members are confident about the long-term prospects for the UK economy. 

“And while we face much uncertainty and many challenges in the immediate future, those businesses that continue to maintain high standards of underwriting and customer focus will be well-positioned to benefit from economic recovery in the future.”