Bridging loan books continued to grow to record levels in the second quarter reaching just under £8.4bn, according to new data from the Bridging & Development Lenders Association (BDLA).

The figures, compiled by auditors from data provided by members of the BDLA, revealed that bridging completions grew to a record £1.74bn in Q2, representing a 15.4% increase on Q1.

This helped to drive a 2.9% increase in the size of overall loan books from £8.1bn to just under £8.4bn.

Applications did fall by 9.9% in Q2 compared to the previous three months, but still totalled £10.2bn.

Included in the lending figures for bridging completions in the June 2024 quarter were £108.2m of development loans. BDLA members also wrote £335.5m of non-bridging development loans, making a development lending total of £443.7m for the quarter. This represented a slight dip compared to the £445.1m that was recorded in the previous quarter total.

CEO of the BDLA, Vic Jannels, said: “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.

“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.”

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