Bridging activity sees a ‘not unexpected’ dip in Q2 despite loan books hitting a record high

According to the latest quarterly data from the Bridging & Development Lenders Association (BDLA), both figures remain above the Q2 2024 results, with completions up by 32.9% year-on-year and applications up 0.1%.

Meanwhile, lender loan books reached a new record high of £13.1bn — a 1.9% increase on the previous quarter.

Compiled by independent auditors using submissions from BDLA members, the data paints a picture of a stabilising market, following the surge in activity at the beginning of the year, claims the association.

Development lending for the quarter stood at £416.7m, down from £516.1m in Q1, while second charge lending rose to £135.4m.

Average LTVs edged down slightly to 56.7%, which the BDLA said reflects a robust approach to underwriting amid wider economic uncertainty.

Vic Jannels, CEO at the BDLA (pictured above), commented: “After a record-breaking first quarter, it’s not unexpected to see a modest step back in activity as the market consolidates.

“What’s important is the continued growth in loan books and the year-on-year uplift across most metrics, which reflect sustained borrower demand and lender resilience.

“We also saw a welcome drop in the value of loans in default, which fell 1.8% quarter-on-quarter, indicating stable loan performance and prudent underwriting by our members.”