Bridging applications and loan books continued to grow in final quarter of 2022, new data published by the the Association of Short-Term Lenders (ASTL) has indicated.

The figures, compiled by auditors from data provided by members of the ASTL, revealed that £8.6bn worth of bridging applications were recorded during Q4 2022.

This represents an increase of 9.1% compared to Q3, while bridging loan books also grew again in the final quarter of the year, rising by 6.4% on Q3 and reaching a new high of just over £6.5bn.

However, the value of completions fell to £1.3bn in Q4, a fall of 10.4% on the previous quarter, although this still means that bridging completions have now been more than £1bn for seven consecutive quarters.

Overall, the ASTL’s figures showed that bridging completions increased by 15.5% in 2022 compared to the previous year, and bridging loan books increased by 28.9% on the same period. The value of applications dropped by 13.9%.

“Given the economic turbulence experienced during the final quarter of 2022, it is perhaps unsurprising that we saw a slight dip in the value of applications for bridging finance,” commented CEO of the ASTL Vic Jannels.

“However, bridging completions and loan books continued their strong upward trajectory, demonstrating sustained growth in the market.

“If you look at 2022 figures as a whole, compared to 2021, the value of bridging loan books has increased by almost 29%. Anecdotal feedback from the market for the first few weeks of 2023 indicates that, while activity is perhaps a little quieter than the early part of 2022, demand is still strong as more customers realise the benefits of securing short-term finance as a way of helping them to achieve their goals.”

Jannels also described the outlook for bridging market as “uncertain”, but suggested the market has continued to show “resilience and sustainable growth”.

He added: “With lender members of the ASTL continuing to commit to our strict Code of Conduct, we are confident that underwriting standards are robust and well equipped to deal with the challenges ahead.”

Share Story: