Bridging loan books reached a new record high of £8.1bn in the first quarter, new figures published by the Association of Short-Term Lenders (ASTL) have shown.

The total, compiled by auditors from data provided by members of the ASTL, represented a 6.8% increase in the size of bridging loan books compared to Q4 2023.

Completions in Q1 2024 reached £1.5bn, a decrease of 10.5% on the previous quarter, although this did represent a 6.2% increase on the same period in 2023.

The ASTL’s data also suggested the pipeline for new business is strong, with applications showing a significant increase of 17.5% in Q1 compared to Q4 2023, to total £11.3bn.

CEO of the ASTL, Vic Jannels, said: “The latest lending data from members of the ASTL shows that demand for bridging finance continues to be strong. Loan books reached £8.1 billion in Q1 2024, representing the highest level on record, and this is without accounting for the lending of one of our members, which only reports its figures on an annual basis.

“Applications increased by 17.5% on the previous quarter and, while the value of loans written decreased by 10.5%, there was still £1.51 billion of lending during the quarter, which is the second highest amount recorded in these surveys.”

The ASTL also reported that the average loan-to-value (LTV) for bridging lending was 60.5% in Q1 2024, up from 58.7% in the previous quarter, while loans in default fell back slightly, showing a decrease of 8.7%.

Jannels added that the bridging sector is currently in “an exciting time”.

“The launch of the Certified Practitioner in Specialist Property Finance (CPSP) last year will play a big role in helping to further enhance standards and, as an association, we are working on upcoming plans that will go a long way in continuing to grow awareness and consideration of bridging finance amongst brokers and customers,” he added.

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