Asked whether bridging lenders are expecting to see more regulation from the FCA during 2016, Bob Sturges, Head of Communications at Omni Capital, said he believed that the regulator’s priorities lay elsewhere.

“The FCA, I believe, will continue to struggle to understand fully the nuances of the short term real estate funding market,” said Bob.

“This won't be for a lack of intellectual capability - the regulator has plenty of smart people on its payroll - but rather because of priorities and distractions elsewhere.” 

Bob added that bridging only accounts for a tiny fraction of the overall UK lending market and therefore did not represent a systemic threat to the financial services system.

“But the FCA is a fact large in the life of many bridging lenders and an organisation with which we must work,” said Bob.

“We have our individual responsibilities in this regard, but our trade associations are there to assist in a material way.”

Keith Aldridge, Managing Director of Amicus, added: “Regulation will never go away, but I don’t anticipate further changes in the short-term. But, over time, I am sure peer-to-peer will be under the microscope and could be subject to compliance in due course.”

The Mortgage Credit Directive (MCD) is due to come into effect in March next year, and many expect it to have a significant impact on the short term lending market.

Narinder Khattoare, Sales Director of Alpha Bridging, said MCD had been widely anticipated and lenders will be fully prepared for its introduction.

“Brokers will need to ensure that they are aware of changes but will find that lenders and packagers will be able to guide them where necessary,” said Narinder.

“While I do not expect any new regulation in 2016, reviews are now a constant in the lending market and, no doubt, there will be further consultation on the regulated/unregulated question in 2016.”

Jonathan Sealey, CEO of Hope Capital, added: “We already have the MCD coming into effect in March of next year. 

“I would expect that the effect of this will be looked at first, however, I wouldn’t rule out further regulation in 2016.”

The FCA has yet to confirm whether or not it will be looking into further regulation of the bridging industry.

However, Bob concluded that it is down to those in the industry to make sure that the reputation of the bridging market continues to improve.

“We must take care to distance ourselves from lenders or practices that threaten to undermine the progress made,” added Bob.

B&C contacted the FCA, but at the time of publication had not recieved a replied.