Bridging loan books reached a new record high in third quarter of 2023, according to the latest data from the Association of Short Term Lenders (ASTL), with applications and completions also showing strong growth during the period.

The figures, compiled by auditors from data provided by members of the ASTL, show increases across all areas of lending, with bridging loan books continuing their upward trend, growing by 2.0% to reach a new high of £7.3 billion.

Applications rose to £9.7 billion, an increase of 5.6% compared to the quarter ended June 2023. Completions were £1.4 billion, which is an increase of 5.8% on the previous quarter.

Average LTVs were virtually unchanged at 57.7%, which is a very small decrease from 57.8% in the June 2023 quarter.

Vic Jannels, CEO of the ASTL, said: “Bridging lending has again bucked the trend of the wider market to record a period of strong growth in the third quarter of 2023. Compared to the same period last year, application volumes have risen by more than 8%, completions have grown by nearly 11% and loan books have swelled by well over 18%. This means that member loan books have exceeded £7bn for second consecutive quarter, hitting a new record.

“This growth can be attributed to several factors. The versatility of bridging finance is being recognised by a growing number of customers and brokers who are realising the vital role it has to play in financing a period of transition, particularly in an uncertain economic environment.

“The sector is growing in professional and building a strong reputation. We still have work to do, of course. There remains opportunity to grow the sector to its full potential, through greater education amongst customers and, at the ASTL, we have an important role to play in this.

“Our lender members will also play their part by continuing to write loans with efficiency whilst maintain a robust approach to risk and customer focus. In delivering these things, we can continue to progress our journey of long-lasting, sustainable growth.”