By Lucy Waters - Managing Director for Aria Finance
Over the years in my role as Managing Director of Aria Finance, I've always believed in looking ahead and focusing on the opportunities that lie before us. With 2025 just beginning, I want to share some of my hopes for the year ahead. These are the areas where I'd love to see positive change, innovation, and renewed optimism across our industry.
1. A More Optimistic Market Driving Down Swap Rates
Persistent high swap rates have been challenging for all of us in the property finance sector. I’m hopeful that we’ll see a shift towards greater market optimism, which could help ease the pressure on swap rates. While current predictions around interest rates might feel a bit negative, I believe there’s a chance that as the year unfolds, these forecasts will start to look more positive.
It would be great to see a rate cut early on in the year. This could provide a much-needed boost to market sentiment and help pave the way for a more favourable environment for property finance.
2. Government Action on Planning and House Building
The need for significant improvements in the planning system and increased investment in housebuilding is something I’m passionate about. While policymakers have long talked about tackling the housing crisis, I’m optimistic that 2025 can be the year when rhetoric turns into meaningful action.
We need to see the government truly putting their money where their mouth is. Better policies and investments in planning and development could unlock significant opportunities, addressing the chronic housing shortage and stimulating economic growth. Real progress in these areas would benefit not only prospective homeowners but also create a ripple effect across the entire property finance ecosystem.
3. Wider Market Appetite for Large Bridging Loans
The demand for larger transactions in the bridging finance market is clear, but the supply doesn’t yet feel sufficient to meet this need. I see significant opportunities for lenders with a strong appetite for larger loans to step in and fill the gap.
There’s so much potential in the larger transaction space. I’d love to see more bridging lenders stepping up to meet that demand. Doing so could open up new avenues for growth and innovation within the market. By addressing this gap, we can better support developers and investors pursuing ambitious projects, further fuelling growth in the sector.
My vision for 2025 reflects both the challenges and the opportunities we face in the property finance market. By fostering optimism, driving policy change, and expanding lending capacity, I believe we can navigate these uncertain times and emerge stronger.
At Aria Finance, we’re committed to making 2025 a transformative year for property finance. Here’s to a year of progress, innovation, and optimism!