Enterprise Finance has claimed that in the first half of this year the number of bridging loans it completed was 20% higher than the equivalent period in 2011.

The gross lending volume of bridging loans during the first six months of the year was 130% higher than H1 2011.

In addition, the overall number of secured loans arranged was 40% higher while gross lending volumes rose by 55%.

The distributor did not disclose actual volumes.

“This first half data confirms what most in the short-term finance industry already know: the bridging sector is experiencing rapid growth,” said Danny Waters, CEO, Enterprise Finance.

“There is not only more demand relative to a year ago, but the loans people are taking out are also a lot bigger on average, which reflects both borrower and specialist lender appetite. While the secured loans sector is still a shadow of its former self, it has certainly come back from the brink. Cheaper rates and improved supply from new and existing lenders have injected all-important liquidity into the sector.

“We expect secured loans to be particularly robust in the short to medium term, as loan availability increases to meet strong demand.”