Bridging loan applications rise to £11.7bn as sector holds firm – BDLA
Applications for bridging finance reached £11.7bn in the final three months of 2025, up 2.6% on the previous quarter.
Bridging lending stayed strong in the last quarter of 2025, as borrower demand kept rising and lending volumes remained high, research from the Bridging & Development Lenders Association (BDLA) found.
Applications for bridging finance reached £11.7bn in the final three months of the year, up 2.6% on the previous quarter.
Completions were just under £2.5bn, which was a slight fall of 2.1% compared to the previous quarter.
Total lender loan books were £13.4bn, just down from the record high of £13.7bn in September, but still much higher than historic levels.
Loans in default dropped by 6.2% quarter-on-quarter.
Development lending went up during the quarter, reaching £420.3m, compared to £376.8m in the previous three months.
Second charge lending was £145.8m, down from £155.2m in Q3.
Average loan-to-value (LTV) ratios increased slightly to 58.6%, compared to 57.3% previously.
Adam Tyler, CEO of the BDLA, said: “Demand for bridging and development finance remains strong, reflecting the important role that short-term lending plays in supporting property investors, developers and homeowners who require flexible funding solutions.
“Our lending data for Q4 2025 is particularly pleasing given the market uncertainty caused by speculation around the Autumn Budget.
“What we are also seeing across the market is a continued shift towards quality, with brokers and borrowers increasingly choosing lenders with strong track records, robust underwriting and clear professional standards.”
Tyler added: “That focus on professionalism and responsible lending is central to the long-term success of the sector.
“The reduction in loans in default this quarter is another indication that lenders are maintaining disciplined underwriting while continuing to support activity across the property market.
“The bridging sector has grown significantly in recent years, and the priority now is ensuring that growth continues in a sustainable and well-managed way.”
He said: “The BDLA will continue to play a key role in supporting high standards and promoting best practice across the industry.”
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