Bridging loan books hit a new record high in the fourth quarter of 2023, according to the latest data published by the Association of Short-Term Lenders (ASTL).

The figures, compiled by auditors from data provided by members of the ASTL, revealed an increase in completions in the Q3 which climbed by 18.4% on Q3 to reach £1.69bn.

Loan books also continued to rise in Q4 and jumped by 4.2% to reach a new high of £7.6bn, an increase of more than 16% on the same period the previous year.

Average loan-to-values (LTVs) saw a marginal increase to 58.7%, up from 57.7% in Q3 last year.

The ASTL figures also showed that applications across the bridging sector did fall slightly, by 1.1% compared to Q3 and totalled £9.6bn Q4.

CEO of the ASTL, Vic Jannels, said: “The short-term lending market has ended the year strongly, with a fairly large increase in loans written and only a small reduction in the level of applications compared to last quarter.

“However, compared to the same period the previous year, application volumes were more than 25% higher in Q4 2023, completions increased by more than 18% and loan books grew by over 16%. Member loan books have now surpassed £7bn for the third consecutive quarter, setting a new record.”

The ASTL is a trade association formed in 2008 to represent lenders who offer bridging or short-term mortgages or loans.

Jannels also stated that the latest figures for the bridging sector suggest there is “potential” for further growth in 2024.

He added: “We believe there is great potential for further, sustainable growth in the market and initiatives such as the Certified Practitioner in Specialist Property Finance (CPSP) will play a big role in helping to achieve this, alongside the continued work we do at the ASTL to raise awareness and consideration of bridging finance amongst brokers and customers.”

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