Bridging loan books continue to break records

Bridging loan books continued to grow to record levels in the second quarter of 2024, reaching nearly £8.4 billion, according to the Bridging & Development Lenders Association (BDLA).
 
The figures, compiled by auditors from data provided by members of the BDLA, show that bridging completions grew to a record £1.74 billion in Q2 this year, representing a 15.4% increase on the first quarter. This helped to drive a 2.9% increase in the size of overall loan books from £8.1 billion to just under £8.4 billion.
 
Applications actually fell 9.9% in the second quarter compared to the previous three months, but still totalled £10.2 billion.
 
Included in the lending figures for bridging completions in the June 2024 quarter were £108.2m of development loans.  In addition, members wrote £335.5m of non-bridging development loans, making a development lending total of £443.7m for the quarter.

This represents a slight decrease compared to the £445.1m that was recorded in the previous quarter total.
 
BDLA chief executive Vic Jannels says: "The latest lending data shows record completions and overall loan book values in the second quarter of 2024, providing further evidence of the continued growth of the bridging and development lending sector.
 
“Despite the challenges faced in the broader economic landscape, the significant increase in bridging completions, ongoing growth in loan books and the sustained demand for development loans highlight the vital role our members play in driving property market activity. And the future for our sector looks incredibly positive as the continued success of the Certified Practitioner in Specialist Property Finance (CPSP) demonstrates a growing number of professionals who are committed to demonstrating their expertise through this accreditation.
 
“The more we can build on this momentum, the greater awareness we can bring to the versatile benefits of short-term property lending and the more opportunities we can deliver to intermediaries to help their clients finance their property objectives.”