Hope Capital has reported that new cases for loans in excess of £1m saw a month-on-month increase of 350% in July.

The latest figures follow the year-on year increase in cases of 189% that was recorded by the specialist short-term lender in June.

Continuing the trend from June’s figures, the lender reported that 60% of its new cases in July were for residential properties, a quarter (25%) for commercial, and the remaining 15% for mixed-use. The average LTV of the loans, weighted by value, is under 60%.

A large proportion of the loans (85%) are aimed at refinancing and capital-raising, which Hope said indicates that businesses are looking to restructure their finances in the wake of lockdown.

The Government has recently announced changes to permitted development rights and planning guidance, including proposals to make it easier to convert commercial properties to residential use. Hope suggested the changes provide investors with new opportunities to meet “changing patterns of demand”.

“It’s clear that there is strong demand from borrowers as the country gradually emerges from lockdown,” commented Hope managing director, Gary Bailey.

“There is a widespread expectation that in the post-coronavirus world, the property market will take on a very different shape. There is likely to be less demand for expensive city-centre office space, for example, and greater need for residential properties to incorporate outdoor space and areas for working comfortably and efficiently from home.

“Change brings fresh opportunities for investors, and recent planning changes mean it is easier for them to move quickly to take advantage of these. What they need is a lender who can also move quickly so that they can get their projects underway with the minimum of delay.

“Hope Capital’s flexible approach means we will always go the extra mile to understand individual projects and borrowers’ unique circumstances.”

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