The Bridging & Development Lenders Association (BDLA) has reported a slight cooling in bridging activity in the second quarter of 2025, following a period of record highs earlier in the year.
Completions reached £2.3bn in the three months to the end of June, down 8.9% on the £2.8bn recorded in Q1. Applications also dipped slightly to £10.2bn, a fall of 1.5% from the previous quarter. Despite this, completions remain up 32.9% year-on-year, while applications are up 0.1% compared with Q2 2024.
Lender loan books rose to a new high of £13.1bn, up 1.9% on Q1. The data, compiled by independent auditors using submissions from BDLA members, suggests the market is stabilising after the surge in activity at the start of the year.
Vic Jannels, CEO of the BDLA, said: “After a record-breaking first quarter, it’s not unexpected to see a modest step back in activity as the market consolidates.
“What’s important is the continued growth in loan books and the year-on-year uplift across most metrics, which reflect sustained borrower demand and lender resilience.
“We also saw a welcome drop in the value of loans in default, which fell 1.8% quarter-on-quarter, indicating stable loan performance and prudent underwriting by our members.”
Development lending fell to £416.7m in Q2 from £516.1m in Q1, while second charge lending increased to £135.4m, up from £122.1m. Average loan-to-values eased to 56.7%, underlining cautious underwriting in the face of wider economic uncertainty.
