Applications for bridging finance reached £11.7bn in Q4, a 2.6% increase on Q3’s total, according to new figures released by the Bridging & Development Lenders Association (BDLA).
The trade body said the bridging sector had “continued to demonstrate resilience” at the end of 2025, against a backdrop of uncertainty surrounding the Autumn Budget.
Completions totalled just under £2.5bn, representing a 2.1% reduction on the previous quarter, while total lender loan books stood at £13.4bn, slightly down from the record high of £13.7bn recorded in September.
Despite the small quarterly dip, the BDLA suggested that loan books remain “significantly elevated compared to historic levels” and continue to reflect the scale and maturity of the sector.
“Demand for bridging and development finance remains strong, reflecting the important role that short-term lending plays in supporting property investors, developers and homeowners who require flexible funding solutions,” CEO of the BDLA, Adam Tyler, commented.
“Our lending data for Q4 2025 is particularly pleasing given the market uncertainty cause by speculation around the Autumn Budget.
“What we are also seeing across the market is a continued shift towards quality, with brokers and borrowers increasingly choosing lenders with strong track records, robust underwriting and clear professional standards.”
Loans in default also fell by 6.2% quarter-on-quarter, which the BDLA said points to stable loan performance and continued prudent underwriting across the market.
Development lending rose during the quarter, with £420.3m of development loans written, up from £376.8m in Q3, while second charge lending totalled £145.8m, slightly down on the previous quarter’s £155.2m.
“The reduction in loans in default this quarter is another indication that lenders are maintaining disciplined underwriting while continuing to support activity across the property market,” Tyler added.
“The bridging sector has grown significantly in recent years, and the priority now is ensuring that growth continues in a sustainable and well-managed way.”
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