The West One Loans Index has revealed that there was a 32 per cent growth in the number of completed bridging loans, with a total value of £2.38 billion. The Government’s Help to Buy scheme has provided less than half of the total bridging funding in the same time, worth £941 million.

Commenting on the results, Duncan Kreeger, Director of West One Loans, said: “New homes are the fundamental fuel of a healthy property market – so the government and Bank of England are right to highlight the dangerous squeeze in the supply of property.

“But there are other ways to supply new homes.  We need to make far better use of the buildings we already have. 

“Help to Buy has a critical role to play in kick-starting brand new building sites – yet ground-up development is only one part of the finance that property professionals need in order to supply raging demand.”

Duncan added: “Thousands of under-loved and under-occupied properties are still left waiting for refurbishment or conversion.  Property developers and potential landlords just need the right sort of finance to get these empty offices or dilapidated blocks of flats to a decent standard and on the market.  Flexibility is king – and government schemes can only do so much.”

The Index also shows that over the past 12 months, up to 1^st May 2014, the bridging industry creating annual gross lending £2.06 billion, showing a growth of 17.9 per cent, compared to the twelve months in the run up to 1^st May 2013.

Since 1^st March 2014, lending has grown at an average rate of 0.8 per cent per month, when industry gross lending was worth £2.02 billion. If this continues for a full year, it would represent an annualised rate of growth of 10 per cent.