Bridging lending in the UK has seen unprecedented growth, breaking records for completion values and loan book sizes.
- In the third quarter, bridging completions reached a new peak of £1.79 billion, marking a 2.6% rise over the previous quarter.
- The overall size of loan books has surpassed £9 billion for the first time, reflecting a notable 7.6% growth.
- An increase in pipeline business was observed, with applications rising by 6.7% during the same period.
- Industry leaders highlight the sector’s expanding role within the UK mortgage landscape, emphasising sustainable growth and regulatory compliance.
Bridging lending in the UK has continued its trajectory of record-setting growth, as evidenced by data from the Bridging & Development Lenders Association (BDLA). For the third quarter of 2024, bridging completions climbed to a new high of £1.79 billion, a 2.6% rise from the previous quarter. This reflects not just an upward trend in lending activities but also the growing reliance on bridging finance among borrowers and brokers.
Furthermore, the total size of loan books has soared past £9 billion for the first time, reaching a total of £9.01 billion. This achievement marks a significant 7.6% increase, underscoring the expanding footprint of bridging finance in the UK’s financial landscape. The increase in the loan book size indicates that lenders are managing to both attract and close more deals, thus supporting more projects and financial needs.
Alongside the rise in completions, there has been an appreciable 6.7% growth in the volume of applications, amounting to £10.9 billion in pipeline business. This suggests a sustained interest and trust in bridging finance as a viable short-term funding solution. These positive figures indicate that both the demand for and supply of bridging loans are on an upward trajectory.
Reflecting on these developments, Vic Jannels, CEO of the BDLA, remarked on the sector’s upward momentum, attributing it to the sector’s critical function within the UK mortgage market. He highlighted that the comprehensive data supports the growing recognition of bridging finance’s utility in helping brokers and borrowers achieve financial goals. Jannels indicated that the organisation is committed to maintaining this growth while emphasising sustainable practices and responsible underwriting.
In efforts to support and ensure sustainable growth, the BDLA is focused on promoting responsible underwriting through adherence to membership rules and a formal code of conduct. The association actively encourages its members to pursue the Certified Practitioner in Specialist Property Finance accreditation. Simultaneously, it engages with regulators and policymakers to continuously improve standards, tackle fraud, and support robust lending practices which contribute significantly to the sector’s health and sustainability.
The current growth trend in the UK bridging lending sector highlights its essential role in the mortgage industry, with expectations for continued expansion.
