The average completion time for bridging loans decreased by 23% year-on-year, dropping from 58 days in 2023 to 47 days in 2024.

According to the report, this reduction reflects the increasing maturity of the bridging finance sector, with both lenders and broker introducers demonstrating enhanced operational capabilities and a deeper understanding of the market.

Despite economic uncertainties in 2024 fuelled by the general election, the budget and other macroeconomic factors, the bridging finance market showed resilience.

Total gross lending stayed relatively consistent at £822.2m, 1% below the historic high of £831m recorded in 2023, making it the second-highest lending volume since 2015.

The average monthly interest rate saw a modest rise to 0.88%, up from 0.86% in 2023.

While interest rates saw a slight increase, the market maintained a balance between regulated and unregulated lending.

Notably, the market witnessed changes in borrowing patterns, with auction purchases increasing from 7% to 11% of total loans, chain-break financing decreasing to 20% from 22%, and re-bridge falling to 7% from 9%.

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Data provided by Knowledge Bank showed that regulated bridging remained the top criteria search made by UK bridging finance brokers in 2024 and in 2023.

Average LTV levels held steady at 58% in 2024, up marginally from 57% in 2023 and the average term remained at 12 months for the eighth consecutive year.

Raphael Benggio, head of lending at MT Finance commented: “The 2024 Bridging Trends data paints a picture of a robust, resilient market that continues to adapt and thrive despite external pressures.

“With faster completion times and steady lending volumes, these results, show how bridging finance has evolved from an alternative solution to an essential component of the UK property finance landscape.”

Phil Jay, director at Complete FS said: “Complete FS experienced a remarkable 60% increase in both regulated and unregulated cases during 2024.

“This growth reflects the market’s increasing demand for rapid completions.

“As bridging specialists, we’ve adapted by carefully selecting the right lenders who have not only streamlined their processes but also work with efficient legal partners in order to deliver quick and efficient solutions for our clients.”