How      TV      programmes      drive      the bridging market… For   viewers   with   time   on   their   hands   and   a   serious   addiction   to   all- things    property    related    it    might    now    be    possible    to    watch    Martin Roberts,   George   Clarke,   Kirstie   Allsopp,   Amanda   Lamb,   Kevin   McCloud and   Phil   Spencer   continuously   around   the   clock.   What   a   thought!   It seems   that,   a   little   bit   like   the   relentless   advance   of   football’s   Premier League,   there   is   nothing   that   can   check   the   growth   of   TV   property programmes! Whilst   some   might   bemoan   the   saturation   of   such   shows   there   can   be little     doubt     that     viewer     favourites     such     as     “Homes     under     the Hammer,”    which    has    been    running    since    2003,    have    inspired    a generation of property investors and developers in the UK. Whilst    the    name    of    the    show    is    a    slight    misnomer,    commercial, industrial   and   even   simply   plots   of   land   feature   alongside   residential lots,   hosts   Martin   Roberts,   Lucy   Maxwell   and   the   rest   of   the   Team have   most   definitely   played   a   significant   role   in   the   growth   of   short- term   bridge   lending,   particularly   in   the   last   10   years   since   the   Credit Crunch. 2015    was    notable    for    two    things    in    relation    to    this    story.    Firstly, former   Manchester   United,   Celtic,   Aston   Villa   and   England   striker   Dion Dublin   made   his   presenting   debut   on   Homes   under   the   Hammer   and secondly,     then     Chancellor     of     the     Exchequer,     George     Osbourne, declared   war   on   Buy-to-let   (BTL)   landlords   by   launching   a   series   of what journalists euphemistically refer to as ‘tax bombshells.” During   the   latter   part   of   his   tenure   as   Chancellor   of   the   Exchequer   we shouldn’t    forget    that    Mr    Osbourne    increased    a    raft    of    taxes    on property    investors    including    the    scrapping    of    a    relief    that    allowed landlords   to   offset   their   mortgage   interest   against   income   tax   bills, the    introduction    of    a    new    annual    tax    on    offshore    owners    of    UK property,   exempting   gains   made   on   properties   from   Capital   Gains   tax reductions,   imposing   an   additional   3%   levy   on   top   of   stamp   duty   rates for   anything   other   than   the   purchase   of   a   main   residence   and   then removing   an   exemption   from   this   levy   for   large-scale   purchases   of   15 properties or more. Against    this    relentless    tax    onslaught,    it’s    frankly    amazing    that    the auction   purchase   and   BTL   markets   have   stayed   as   strong   and   robust as   they   have.   Of   course,   innovative   products   from   a   new   generation   of lenders   have   played   a   big   part   in   offsetting   Osbourne’s   legislation   but so   to   have   Dion,   Martin,   Lucy   and   their   colleagues   on   a   huge   variety of property shows. TV   shows   have   been   instrumental   in   helping   to   underpin   property demand   by   educating   investors   on   how   they   might   acquire   properties at   lower   prices,   showing   how   they   can   then   renovate   and   improve these    properties    to    enhance    their    value    and    ultimately    achieve greater rental yields or larger capital growth if they sell. By   following   the   acquisition   of   several   properties   at   auction   in   each episode,    many    of    which    subsequently    require    refurbishment,    the Homes     under     the     Hammer     Team     has     educated     and     informed potential   investors.   Crucially   for   our   market,   investors   have   seen   on this   and   many   other   TV   property   shows   just   how   bridging   loans   can resolve    the    very    real    time    pressures    surrounding    the    financing    of successful auction bids. They   have   learnt   that   having   paid   a   10%   deposit   on   the   day   of   the auction,   investors   usually   have   just   28   days   to   pay   the   balance   or   risk losing   their   deposit.   In   addition,   they   have   learned   how   bridging   loans can    be    used    in    variety    of    time-constrained    situations,    not    just    for auction     purchases     and     increasingly     come     to     understand     the importance of a clearly defined exit strategy for any loan they take on. Furthermore,   the   relaxation   of   planning   rules   in   recent   years   has   seen another     interesting     trend     featured     by     TV     property     shows,     the conversion     of     empty     office     blocks     or     shops     into     residential accommodation   under   “permitted   development”   rights.   Interestingly the   declining   UK   High   Street   is   actually   facilitating   the   development   of more   residential   units   in   the   centre   of   towns   and   cities.   Whilst   this   is not   great   for   shoppers   there   can   be   no   denying   that   it   does   relieve pressure     on     green     and     brownfield     sites     whilst     simultaneously recycling existing buildings with all the attendant benefits. In   summary   then   there   are   many   reasons   why   the   short-term   lending market   has   grown   to   the   point   where   it   is   now   estimated   to   be   worth more    than    £4Bn    PA    but    there    can    be    no    denying    that    property focussed    television    programmes    have    played    an    important    role    in fuelling   a   great   British   housing   obsession.   These   programmes   have encouraged   and   informed   in   equal   measure   and   we   all   owe   a   debt   of gratitude   to   them   for   helping   the   bridging   and   wider   housing   market weather   the   storms   that   have   hit   and   emerge   stronger   on   the   other side. Brian West, Director Central Bridging