Bridging loan books hit another record high in Q1 2024, reaching £8.1bn, according to the latest data from the Association of Short Term Lenders (ASTL).
The figures, compiled by auditors from data provided by members of the ASTL, showed an increase in the size of bridging loan books in the first quarter of 2024, rising by 6.8% on the final quarter of 2023 to reach £8.1bn.
Completions in Q1 2024 hit £1.51bn, which was a decrease of 10.5% on the December 2023 quarter, but still representing a 6.2% increase on the same period in 2023.
The pipeline for new business was strong, with applications showing a large increase of 17.5% in the first quarter of 2024, compared to the quarter ended December 2023, totalling £11.3bn.
The ASTL reported that the average loan-to-value (LTV) for bridging lending was 60.5% in Q1 2024, an increase from 58.7% in the December 2023 quarter.
While loans in default fell back slightly showing a decrease of 8.7% compared to December 2023.
Vic Jannels (pictured), CEO of the ASTL, said: “The latest lending data from members of the ASTL shows that demand for bridging finance continues to be strong.
“Loan books reached £8.1bn 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 £1.51bn of lending during the quarter, which is the second highest amount recorded in these surveys.”
He added: “This is an exciting time for the sector.
“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.”
