Is 2025 shaping up to be a defining year for bridging finance?

The figures highlight continued momentum within the sector, with bridging finance playing a central role across a range of transactions. Our data revealed completions in Q1 held at £2.8bn – matching the record set in Q4 2024. This is notable because Q1 is traditionally a quieter period, so maintaining these levels reflects a robust level of ongoing market activity.

The most eye-catching statistic from our lending data was that applications surged to £18.34bn in Q1, up by 55.3% from the previous quarter. Instinctively this leap feels like an anomaly, but it has been rigorously checked by our auditors and if this application data translates to future completions, it indicates seismic growth in borrower demand and lender engagement.

Demand for finance has remained broad-based. Development lending was stable at £516m, regulated bridging settled at 14% of overall lending – returning to typical levels after recent fluctuations – and the average loan size held steady at £540,000.

The BDLA’s collective loan book now stands just under £13bn, supported by a membership base that approaches 100 lender and associate organisations. This scale enables deeper engagement across the sector, the development of new market tools, and ongoing representation of member interests.

Focus on fraud

Fraud prevention remains a central focus. Our partnership with Synectics Solutions has enabled the rollout of a bespoke fraud intelligence-sharing solution, developed specifically for the short-term property lending market.

This system will give all participating BDLA members access to real-time, secure insights typically reserved for the largest financial institutions. Importantly, these insights will be specifically tailored for the requirements and characteristics of the short-term market.

This initiative is designed to help lenders detect and respond to suspicious activity earlier in the lending lifecycle by identifying red flags at the application stage. It complements the BDLA’s existing suite of due diligence tools and reflects our commitment to maintaining the integrity of the bridging and development finance sector.

The regulatory environment continues to evolve. We remain in active dialogue with the FCA and HM Treasury to ensure our sector's interests are reflected in policy decisions. We welcome the announcement that proposals have been dropped to name firms under investigation prior to confirmation of wrongdoing and we will continue to advocate for regulation that is proportionate and grounded in evidence.

We are also monitoring the implications of the Court of Appeal ruling on commission disclosure in the motor finance sector. While this case arises from a different part of the market, its legal precedent could impact bridging lenders and we are engaged in assessing its full implications for our members.

Raising standards

Professional development is a key part of our agenda. The Certified Practitioner in Specialist Property Finance (CPSP) accreditation has now supported over 1,000 individuals in achieving structured, sector-specific training.

We are also working to foster closer relationships between lenders and institutional capital. There is growing interest in structured partnerships, and we are committed to enabling collaboration that supports long-term sector growth.

Rising application volumes are welcome, but they bring operational pressures. Conversion rates continue to present challenges, and improved efficiency between brokers and lenders is essential. Clear and comprehensive initial enquiries, especially regarding exit strategies, help streamline the process and improve outcomes. The BDLA remains focused on supporting improved standards throughout the process.

Looking ahead

While geopolitical uncertainty and ongoing global tensions may create some volatility in financial markets, the fundamentals underpinning the UK property sector remain solid. Bridging finance, by its nature, is resilient in times of uncertainty, offering flexible solutions when mainstream lending slows or decision-making becomes cautious.

There are also encouraging signs in the wider economic landscape. The Bank of England is widely expected to reduce the Base Rate further in the second half of the year, which could unlock more transactional activity across the property market. And crucially, the long-term imbalance between housing demand and supply persists presenting opportunity across development, refurbishment, and property investment sectors. We are cautiously optimistic that the sector can continue its momentum.

The BDLA remains committed to ensuring that our members are equipped with the resources and representation they need to navigate an evolving market. Whether through regulatory engagement, professional development, or improved fraud detection, our goal is to support a strong and stable sector.