Bridging applications surge despite dip in completions and loan books

According to the latest data from the Bridging & Development Lenders Association (BDLA), the bridging sector continued to demonstrate resilience in the final quarter of 2025, with borrower demand rising and lending volumes remaining at historically strong levels.

Despite the Autumn Budget causing a downturn in confidence through October and November, applications for bridging finance reached £11.7bn in the three months to the end of December, representing a 2.6% increase on Q3 2025.

Completions totalled just under £2.5bn, representing a modest 2.1% reduction on the previous quarter, while total lender loan books stood at £13.4bn, slightly down from the record high of £13.7bn recorded in September.

Loans in default also fell by 6.2% quarter-on-quarter, which the association said points to stable loan performance and continued prudent underwriting across the market.

Development lending rose during the quarter, with £420.3m of development loans written, up from £376.8m in Q3.

Meanwhile, second-charge lending totalled £145.8m, slightly down on the previous quarter’s £155.2m.

Average LTV ratios increased modestly to 58.6%, compared to 57.3% in the previous quarter.

The BDLA’s quarterly data survey is compiled by independent auditors, using figures submitted by lender members.

Adam Tyler, CEO at the BDLA (pictured above), commented: “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.”