New bridging loan completions totalled £2.8bn in Q1 2025, matching the record set in Q4 2024, the Bridging & Development Lenders Association (BDLA) has revealed.
The association said the latest figures defied "seasonal norms", with Q1 typically recording reduced activity due to a seasonal slowdown.
In the first quarter of 2025, new bridging applications increased by 55.3% quarter-on-quarter to £18.34bn. The BDLA said this marked an "unprecedented spike in demand".
In this period, the average loan size was £540,000, which was in line with Q4 2024, while regulated bridging increased by 23% quarter-on-quarter, reaching £398m and making up 14% of total lending.
The association added that the latest figures also reflect sustained market momentum and growing borrower confidence.
Chief executive officer at the BDLA, Vic Jannels, said: "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. 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.
"The total value of loan books in Q1 remained relatively unchanged compared to the previous quarter. However, it is worth noting that, as we have welcomed new members to the BDLA over recent months, the total loan book size of our lender members has swelled and is now just under £13bn."
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