The Association of Short Term Lenders (ASTL) has reported that its members’ bridging loan books continued to grow in Q2 2023, increasing by more than 5% to an all-time high of just over £7.1bn.

The figures, compiled by auditors from data provided by members of the ASTL, show that bridging completions were £1.3bn in the second quarter of the year, representing a slight fall of 5.3% on the previous quarter.

This small drop was reflected in applications, which were £9.2bn in the quarter ending June 2023 – a decrease of 5.9% compared to the quarter ended March 2023.

Average LTVs fell slightly to 57.8% in Q2, which is a reduction from 59.3% in Q1.

Vic Jannels (pictured), CEO of the ASTL, said: “The short-term lending sector continued to demonstrate its versatility and resilience in the second quarter of this year, during which period members combined loan books have exceeded £7bn for the first time.

“Whilst applications and completions were slightly down on the previous quarter, they were both higher than the same period last year. Given that we are still faced with the vagaries of an uncertain economy, and faltering property market, this represents another very strong performance.

“We cannot ignore the wider economic environment, which is putting greater pressure on exit strategies and so it’s important that lenders continue to take a robust approach to underwriting to help ensure the market continues to grow in a cautious and sustainable way. In doing this, the market will be well placed to help even more customers to finance transitional periods in the future.”