2024 has been an interesting year for Roma – we have seen such uncertainty in the market due to the threat of a General Election and high interest rates, but we have navigated this period in a way that has allowed our customers to continue to create income from their property portfolios, and this has led us to achieving our most successful period in the company’s history.
One of the key trends we are seeing currently is an increase in demand for single residential units being purchased and then refurbished using one of our bridging products to allow landlords to transform assets into multi-tenant properties – houses in multiple occupation (HMO) or multi-unit freehold buildings (MUFBs).
This key change enables investors to significantly increase the income they can achieve from an individual property as well as boosting the investment value, so it’s a win-win.
Working closely with these customers, we know that the preferred exit strategy is then to refinance to a term lender, but using our bridging products is a great tool for speedy acquisition at the outset, and then gives property owners the ability to add value through refurbishment works.
Change of use
An alternative route that is becoming increasingly popular – and can have a hugely positive impact on local communities – is the purchase and change of use of void commercial buildings.
Unfortunately, it has been well documented that town centres up and down the country are struggling to retain a thriving high street and as a result there is a range of second-hand stock available for savvy investors. We have worked with a number of customers who have invested in such properties and used bridging products to refurbish buildings to provide smaller retail units that are easier to rent out, alongside residential spaces that benefit from having town centre amenities close by.
This mixed-use approach is growing in popularity as a way of spreading risk, increasing yields and a property’s long term investment value, but also for the fact that this type of project can help the wider regeneration of the high street by attracting people and businesses back to an area, driving footfall and encouraging further investment.
Roma is a progressive business and we pride ourselves on being an industry leader. As a result, our team works incredibly hard to continually review market activity, current trends and where the demand is coming from to ensure our product range meets the needs of our customers. Furthermore, we won’t just look at the property value on day one, we work in partnership with our customers to understand the long-term goal and help them to create wealth through property.
In any transaction, time and knowledge are key, and this is what Roma is able to offer customers through its short-term loans.
Executed correctly, bridging loans can enable better buying opportunities by allowing customers to act swiftly. This means that we allow customers to increase the value of the asset in the short-term which secures long-term gains.
Michael Allison is commercial director at Roma Finance
