The Association of Short Term Lenders (ASTL) has reported an increase in bridging applications and loan books during Q4 2022, despite economic uncertainty.
Bridging applications grew by 9.1% to £8.6bn compared to Q3 2022, while loan books expanded by 6.4%, reaching a new high of over £6.5bn.
However, the value of completions fell by 10.4% to £1.3bn in Q4, although bridging completions have exceeded £1bn for seven consecutive quarters.
In 2022, bridging completions and loan books increased by 15.5% and 28.9% respectively compared to 2021, while the value of applications dropped by 13.9%.
Vic Jannels, CEO of the ASTL, said: “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.
“However, bridging completions and loan books continued their strong upward trajectory, demonstrating sustained growth in the market.”
Despite the uncertainty, the bridging market remains resilient, with lenders adhering to the ASTL’s strict Code of Conduct.
Jannels added: “We can also look forward to the upcoming launch of the Certified Practitioner in Specialist Property Finance (CPSP) optional e-learning programme, which we are delivering alongside our colleagues at the Financial Intermediary & Broker Association (FIBA) and the London Institute of Banking & Finance (LIBF), which will help to further raise standards and support the sustained growth of the sector.”
