Appetite for debt finance in the UK is rising, with 32% of businesses surveyed by ASK Partners and OakNorth stating their desire to borrow has grown.
Research was carried out by OakNorth and ASK Partners amongst their client base of borrowers during Q4 2024.
Highlights include:
· Seven in ten (70%) express heightened interest in UK investments over next 6-12 months
· Nearly three quarters (71%) of businesses are exploring diverse approaches to structuring debt finance
· Three in 10 (29%) respondents plan to incorporate junior debt into their financial structures, while a quarter are opting for a mix of equity and junior debt
Daniel Austin, Chief Executive and Co-founder at ASK Partners, said:
“These results are a really positive sign for economic growth. The Autumn Budget was generally not well received by businesses, given the rises in employment costs, but these figures prove that it has not dampened appetite for borrowing and investment. “However, challenges such as tax increases, inflation, and tighter environmental regulations persist. Navigating these headwinds will require innovative financing and deep market insight. Debt finance providers with these skills will play a key role in reshaping UK real estate in 2025, helping developers and investors capitalise on opportunities in this evolving landscape.”
