Broker Barometer 2021 - Together - Shawbrook Bank
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Broker
Barometer
2021 Together
THIS DOCUMENT IS FOR PROFESSIONAL INTERMEDIARIES ONLY AND SHOULD NOT BE SHOWN TO POTENTIAL CLIENTS
Broker Barometer 2021 1Foreword
Property Investment Market remains optimistic
in the face of continued Covid-related uncertainty.
Shawbrook’s 2020 Broker Barometer looks at the primary concerns of the broker community,
revealing a largely positive outlook for 2021.
1. Broker optimism continues… 2. Lending restrictions remain a key concern
Despite on-going uncertainty as we continue to navigate the Brokers reported that ‘lending restrictions’ remain their top
challenges of the pandemic, brokers remain optimistic when concern for 2021, with ‘valuation issues’, ‘Covid restrictions’
looking at the year ahead. Over two thirds (67%) of commercial and ‘product availability’ also ranked highly for anticipated
brokers said they were confident about the UK lending challenges.
environment this year, whilst 60% state they felt confident
about the growth of their business. Whilst it’s great to see such positivity among our broker
community, we’re very aware of the challenges they face
Second charge brokers reveal a more cautious view, with this year and as we head further into lockdown 3.0, it is
Emma Cox only 30% feeling confident about the lending environment crucial that lenders continue to support and work closely
Sales Director, and 19% about business growth. with their broker partners.
Property Finance Division, Confidence in the UK economy has grown across both This is very much front of mind for Shawbrook and we
Shawbrook Bank commercial and second charge brokers since our last plan to continue investing in our business with product
Barometer six months ago, with 44% of commercial brokers and technological enhancements, supported by
and 50% of second charge brokers showing confidence in a robust appetite to lend across all our markets.
this area for 2021 – a 10% increase across both.
We encourage you to reach out to your Regional
It’s encouraging to see that since the height of the first Development Manager to discuss any of these issues
lockdown, 58% of commercial brokers and 66% of second and we look forward to supporting you throughout 2021.
charge brokers have seen an increase in business volumes
of more than 20%. This strong bounce back is likely to be
a key factor in their optimistic view of the year ahead.
Broker Barometer 2021BTL,
Commercial
& Bridging
Broker Barometer 2021 3How would How would
you compare you compare
business volumes business volumes
from the start of from April 2020
2020 to the (during the
present day? height of the UK
lockdown 1.0) to
the present day?
-40% 8% -40% 9%
-30% 14% -30% 5%
-20% 18% -20% 7%
-10% 9% -10% 7%
No Change 12% No Change 5%
+10% 9% +10% 9%
+20% 20% +20% 19%
+30% 8% +30% 18%
+40% 3% +40% 22%
Broker Barometer 2021 4Q5 What do you anticipate as the three biggest challenges to your business in 2021?
Q5 What do you anticipate as the three biggest challenges to your business in 2021?
74%
74% 66%
66%
47%
47%
31%31%29%29%
22% 22%
16% 15%
16% 15%
Lending restrictions
Lending restrictions
Valuation issues
What do you
anticipate as
Valuation issues
Covid-19 restrictions
Covid-19 restrictions
the three biggest
Transactions being put on hold
Transactions being put on hold
Product availability
challenges to
Product availability
Brexit uncertainty
Brexit uncertainty
Other
Otherwindow shopping
Client
Client window shopping
your business
in 2021?
Broker Barometer 2021
3 512%
19%
24%
11% 34%
Q6 Thinking ahead to 2021, how confident are you about the following? Very concerned
11%
Fairly concerned
Indifferent
The lending environment The UK economy Business growth
Fairly confident
3% 10% Very confident
4%
12%
62%
19%
45%
24%
40%
11% 34%
Very concerned
11%
Fairly concerned
15% Indifferent
5% 4% Fairly confident
10%
Thinking
Very confident
62% 45%
about the year
ahead, how
40%
confident are
you about the
15% following?
5% 4%
Broker Barometer 2021 677%
65%
59% What do you
45% 77%
22%65% anticipate as
18%59%
14%45%
the three biggest
22% operational
18%
14% challenges
in 2021?
Navigating the product landscape
Growing the business
Retaining competitive advantage
Lead generation
Navigating the product landscape
Digital adoption
Other Growing the business
TransitioningRetaining competitive
back to working advantage
in an office
Lead generation
Digital adoption
Other
Transitioning back to working in an office
Broker Barometer 2021 7Q8 What do you anticipate as the three biggest challenges to face your clients in 2021?
Q8 What do you anticipate as the three biggest challenges to face your clients in 2021?
52% 46% 43% 42% 31% 25% 19% 14% 13% 5% 5% 4%
52% 46% 43% 42% 31% 25% 19%
What do youValuation issues
Financial challenges (personal finances)
Tenant arrears
Interest rates
anticipate as
Slow market bounce back Securing tenants
the three biggest
Job certainty Additional licensing Valuation issues Tenant arrears
Falling property prices Other Financial challenges (personal finances) Interest rates
challenges Impact of Brexit Vacant properties Slow market bounce back Securing tenants
to face your
Job certainty Additional licensing
Falling property prices Other
clients in 2021? Impact of Brexit Vacant properties
Broker Barometer 2021 8Q9 Which area of the property market do you think will experience the strongest growth in 2021?
29% 29%
Buy-to-Let Bridging
14% 14%
14%
Semi-commercial Investment Second Charge Mortgages
%
29
11% 3%
Residential Commercial Investment
11%
3%
Which area
of the property
market do
you think will %
29
14
%
experience the
strongest growth
in 2021?
Broker Barometer 2021 9Increase
Do you think
Q10 Do you think it is likely that investors will look to increase or reduce their property portfolio in 2021?
Decrease it is likely that
investors will
Don't know
Increase
look to increase
Decrease
or reduce
Don't know
their property
portfolio in 2021?
62%
?
29%
10%
Broker Barometer 2021 10Q11 Did you support the Stamp Duty Holiday being introduced in July 2020?
86%
86%
10%
10%
? 4%
? 4%
Did you support
the Stamp Duty
Holiday being
Yes introduced
No
Yes
Not sure
No
in July 2020?
Not sure
Broker Barometer 2021 11Q12 What impact have you seen as a result of the Stamp Duty changes?
Increased investment in the property market
Regional inequality
Higher LTVs
Increased valuation requests
Resilient property prices
No real impact
8%
Other
12
%
63%
33%
What impact
14%
have you seen
4%
7%
as a result of
the Stamp Duty
changes?
Broker Barometer 2021 12Q13 Do you think that the Stamp Duty Holiday should be extended past March 2021 to aid market recovery?
Q13 Do you think that the Stamp Duty Holiday should be extended past March 2021 to aid market recovery?
Strongly agree
Strongly agree
Agree Agree
Neither agree nor disagree
Neither agree nor disagree
Disagree Disagree 37%37%
Strongly disagree
Strongly disagree
37%
37%
Do you think that
the Stamp Duty
Holiday should
be extended
14%
14% past March 2021
to aid market
10% recovery?
10%
1%
1%
Broker Barometer 2021 132%
Q13 Do you think that the Stamp Duty Holiday should be extended past March 2021 to aid market recovery?
What do you
7% 2% ? anticipate as the
biggest impact
41%
7% of Stamp Duty
43% Holiday ending
41%
in March 2021?
43%
7%
7%
34%
Reduced investment in the market
34%
54% Rising property prices
Falling property prices
Reduced investment in the market
Transactions not completing by the deadline
54% Rising property prices
Backlog of work in Jan‐March 2021
Falling property prices
No real impact
Transactions not completing by the deadline
Other Backlog of work in Jan‐March 2021
No real impact
Other
Broker Barometer 2021 14Q15 Do you feel that you and your business are prepare
ness are prepared for Brexit?
Do you feel that
you and your
? business are
18%
prepared
for Brexit?
1%
81%
Yes No Not sure
Broker Barometer 2021 15Q16 What do you think will be the most challenging impact of Brexit on the property market?
What do you
48% think will be the
most challenging
impact of Brexit
on the property
market?
35%
14%
Reduced numbers of EU investors
Nervous attitudes amongst investors
Changes to laws and regulation
Broker Barometer 2021 16Second
charge
Broker Barometer 2021 17How would How would
you compare you compare
business volumes business volumes
from the start of from April 2020
2020 to the (during the
present day? height of the UK
lockdown 1.0) to
the present day?
-40% 23% -40% 8%
-30% 31% -30% 15%
-20% 15% -20% 4%
-10% 8% -10% 4%
No Change 15% No Change 0%
+10% 0% +10% 4%
+20% 4% +20% 8%
+30% 4% +30% 31%
+40% 0% +40% 27%
Broker Barometer 2021 1812%
Lending restrictions
Covid-19 restrictions
Product availability
3 What do you
anticipate as
the three biggest
4%
Valuation issues challenges to
Brexit uncertainty
Transactions being put on hold
your business
Other in 2021?
Client window shopping
Q5 What do you anticipate as the three biggest challenges to your business in 2021?
96%
69%
54%
27%
19% 19%
12%
4%
Lending restrictions
Covid-19 restrictions
Product availability
Broker Barometer 2021 19
Valuation issuesThinking ahead
to 2021, how
Q6 Thinking ahead to 2021, how confident are you about the following?
confident are
The lending environment The UK economy Business growth you about the
0% 0%
following?
Q6 Thinking ahead to 2021, how confident are you about the following?
12%
The lending environment The UK economy Business growth
38%
3%
42%
4%
69%
12% Very concerned
19% Fairly concerned
12% 24% Indifferent
Fairly confident
Very confident
11% 34%
Very concerned
11%
27% Fairly concerned
46% Indifferent
15% Fairly confident
10% Very confident
15% 19%
0% 62% 0% 45%
4%
40%
Broker Barometer 2021 2081% Growing the business
62% Lead generation
62% Navigating the product landscape
35%
Retaining competitive advantage
35%
19% Transitioning back to working in an office
8% Digital adoption
Other
What do you
anticipate as
the three biggest
operational
Growing the business
Lead generation
challenges
Navigating the product landscape
in 2021?
Retaining competitive advantage
Transitioning back to working in an office
Digital adoption
Other
Broker Barometer 2021 21Q8 What do you anticipate as the three biggest challenges to face your clients in 2021?
Q8 What do you anticipate as the three biggest challenges to face your clients in 2021?
92% 92% 35% 27% 23% 15% 8% 4% 4%
92% 92% 35% 27% 23% 15% 8% 4% 4%
Financial challenges (personal finances)
Job certainty
Valuation issues
Securing tenants
What do you
Slow market bounce back Vacant properties anticipate as
the three biggest
Financial
Falling challenges
property prices (personal finances) OtherValuation issues
Impact of Brexit
Job certainty Securing tenants
Slow market bounce back Vacant properties challenges
to face your
Falling property prices Other
Impact of Brexit
clients in 2021?
0
20
40
60
80
100
Broker Barometer 2021 222% growth in 2021?
Q9 Which area of the property market do you think will experience the strongest
1
42% 38%
0%
Buy-to-Let
Second Charge Mortgages Residential
Commercial Investment
4%
12% 4%
Semi-commercial Investment
Bridging
42% BridgingResidential
4%
Commercial Investment
Second Charge Mortgages
12
%
4% 0%
Buy-to-Let Semi-commercial Investment
38 42% 38%
% Second Charge Mortgages Residential
42%
12% 4%
Bridging Commercial Investment
4% area 0%
Which
of the property
Buy-to-Let Semi-commercial Investment
38
market do
% you think will
experience the
strongest growth
in 2021?
Broker Barometer 2021 23Do you think
it is likely that
investors will Q10 Do you think it is likely that investors will look to increase or reduce their property portfolio in 2021?
look to increase
or reduce
Increase
Decrease
their property
Don't know
portfolio in 2021?
?
54%
31%
Do you think it is likely that investors will look to increase or reduce their property portfolio in 2021?
Increase
15% Decrease
Don't know
Broker Barometer 2021 24Q11 Did you support the Stamp Duty Holiday being introduced in July 2020?
86%
81%
10%
0%
? 4%
? 19%
Did you support
the Stamp Duty
Holiday being
Yes introduced
No
Yes
Not sure
No
in July 2020?
Not sure
Broker Barometer 2021 25Q12 What impact have you seen as a result of the Stamp Duty changes?
What impact
have you seen In
as a result of
8%
R
the Stamp Duty H
In
changes? R
N
O
19
%
58%
%
42
Increased investment in the property market
Regional inequality
Higher LTVs
4%
4%
Increased valuation requests
8%
Resilient property prices
No real impact
Other
Broker Barometer 2021 26Q13 Do you think that the Stamp Duty Holiday should be extended past March 2021 to aid market recovery?
Do you think that
the Stamp Duty Strongly agree
Holiday should Agree 23%
be extended
Neither agree nor disagree
Disagree
past March 2021 Strongly disagree
to aid market
recovery?
38%
Q13 Do you think that the Stamp Duty Hol
31%
Strongly agree
Agree
Neither agree nor disagree
Disagree
8% Strongly disagree
0%
Broker Barometer 2021 27Q13 Do you think that the Stamp Duty Holiday should be extended past March 2021 to aid market recove
Reduced investment in the market
Rising property prices 4%
Falling property prices
Transactions not completing by the deadline
Backlog of work in Jan‐March 2021
No real impact
Other
12%
31%
? 8%
42%
What do you
anticipate as the
35%
biggest impact
of Stamp Duty
Holiday ending
in March 2021? 42%
Broker Barometer 2021 28ness are prepared for Brexit?
Yes No Not sure
?
27%
4%
Do you feel that
69%
you and your
business are
prepared
for Brexit?
Broker Barometer 2021 29Q16 What do you think will be the most challenging impact of Brexit on the property market?
What do you
think will be the
most challenging
impact
Q16 Whatof Brexit
do you think will be the most challenging impact of Brexit on the property market?
on the property 50%
market? 46%
50%
Nervous attitudes amongst investors
Changes to laws and regulation 46%
Other
Nervous attitudes amongst investors
Changes to laws and regulation
Other
4%
Broker Barometer 2021 30You can also read
