For the quarter which ended 31 December 2012, the ASTL has reported a 23% increase in bridging loan applications.

Applications were received for £1.313 billion, while ASTL members advanced £283 million worth of loans, a rise of 6.8%.

The loan books at the end of the period totalled £1.054 billion, an increase of over 8%.

ASTL short term lending figures represent the lending of all of its members; they are produced and published quarterly.

Benson Hersch, chief executive of the ASTL, said: “The figures released today are significant. They reflect the increased demand I expected and; despite some increased bank lending and the effect of the Funding for Lending Scheme, there is still a need for bridging finance.

“The current quarter has seen steady demand and I expect the next quarter’s figures, which will be published before the end of May, to continue to show a steady increase.”