Britain’s bridging sector has entered 2025 on a strong footing, with the latest figures from the Bridging & Development Lenders Association (BDLA) revealing a record-breaking start to the year.
New data compiled by independent auditors shows that bridging completions totalled £2.8 billion in the first quarter, matching the all-time high set in Q4 2024.
The figures are particularly striking given that Q1 typically marks a seasonal dip in activity, suggesting a marked change in borrower behaviour and continued momentum in the market.
APP SURGE
Applications for new bridging loans increased to £18.34 billion over the same period, marking a 55.3% increase on the previous quarter. It is the highest volume of quarterly applications ever recorded by the BDLA and points to strengthening borrower demand and a deepening pipeline of deals for lenders.
Vic Jannels, chief executive of the BDLA, said the data underlined the sector’s resilience. “Q1 is traditionally the quietest quarter of the year, so to maintain the record completion levels seen in Q4 2024 is a strong indicator of continued resilience in the market,” he said.
“The sheer scale of the rise in applications is striking and, if even only a portion of these applications convert, we could see lending volumes reach new heights over the next two quarters.”
TOTAL LOAN BOOK
Jannels also noted that the collective loan book size of BDLA members now stands just below £13 billion, reflecting the addition of new lender members over recent months.
Although the value of total outstanding loans remained broadly flat compared with Q4 2024, the wider base of contributors suggests underlying growth across the association’s lender base.
The average loan size in Q1 2025 was £540,000, maintaining the level seen at the end of last year. Regulated bridging saw a 23% quarter-on-quarter increase, reaching £398 million, and accounted for 14% of total lending. That proportion reflects a return to more typical levels following an unusual spike last summer, when regulated deals briefly made up 37% of all lending in Q2 and Q3.
Development lending remained steady at £516 million in the first quarter, pointing to consistent appetite from investors and developers despite the broader challenges facing the construction sector.
