UK bridging lending has reached a new milestone, with loan books exceeding £10 billion for the first time, according to the latest data from the Bridging & Development Lenders Association (BDLA).

The figures highlight continued growth across applications, completions, and total loan values, underscoring the increasing demand for short-term property finance.

RECORD-BREAKING FIGURES IN Q4

Data compiled by auditors from BDLA member submissions show that bridging completions hit a record £2.30 billion in Q4 2024, marking a 28.6% increase on the previous quarter. This growth contributed to a 14.4% rise in overall loan book values, which now stand at £10.30 billion.

Pipeline business also saw strong growth, with applications increasing by 3.9% to £11.30 billion in the final quarter of 2024.

MARKET CONFIDENCE

Vic Jannels, CEO of the BDLA, said: “The latest BDLA lending data confirms that bridging and development finance is reaching new heights, with record-breaking figures across completions and loan book sizes.

“Bridging completions surged to £2.30bn, a remarkable 28.6% increase from the previous quarter, while total loan book values have now exceeded £10bn for the first time, reaching £10.30bn – a 14.4% rise.”

He attributed this growth to the increasing recognition of bridging finance as an essential tool in the property market, offering borrowers flexibility that traditional lenders often cannot: “This continued growth reflects the increasing recognition among brokers and borrowers of the many advantages that flexible, short-term property finance can offer.

“Whether it’s facilitating time-sensitive transactions, supporting development projects, or unlocking opportunities that traditional funding cannot, it’s clear that bridging finance has become an essential tool in the property market and is growing in importance.”

As demand for bridging finance continues to rise, the BDLA sees its membership and influence also expanding. Jannels reaffirmed the association’s commitment to upholding responsible lending practices and promoting professional development in the sector.

He added: “As demand rises, so too does the BDLA’s membership and influence. We are committed to supporting sustainable growth by working with lenders to uphold responsible underwriting, combat fraud, and promote professional development through initiatives such as the Certified Practitioner in Specialist Property Finance (CPSP) accreditation.

“Our engagement with regulators and policymakers continues to help shape a strong and stable future for the sector.”