Bridging loan books break through £8bn

by Ivor

Bridging loan books hit another record high in Q1 2024, reaching £8.1 billion, according to the latest data from the Association of Short Term Lenders (ASTL).

The figures, compiled by auditors from data provided by members of the ASTL, show an increase in the size of bridging loan books in the first quarter of 2024, rising by 6.8% on the final quarter of 2023 to reach £8.1 billion.

Completions in Q1 2024 were £1.51 billion, which was a decrease of 10.5% on the December 2023 quarter, but still represents a 6.2% increase on the same period in 2023.

And the pipeline for new business was strong, with applications showing a large increase of 17.5% in the first quarter of 2024, compared to the quarter ended December 2023, totalling £11.3 billion.

The ASTL reports that the average LTV for bridging lending was 60.5% in Q1 2024, which is an increase from 58.7% in the December 2023 quarter. Whilst loans in default fell back slightly showing a decrease of 8.7% compared to December 2023.

Vic Jannels, CEO of the ASTL says: “The latest lending data from members of the ASTL shows that demand for bridging finance continues to be strong. Loan books reached £8.1 billion in Q1 2024, representing the highest level on record, and this is without accounting for the lending of one of our members, which only reports its figures on an annual basis.

“Applications increased by 17.5% on the previous quarter and, while the value of loans written decreased by 10.5%, there was still £1.51 billion of lending during the quarter, which is the second highest amount recorded in these surveys.”

“This is an exciting time for the sector. The launch of the Certified Practitioner in Specialist Property Finance (CPSP) last year will play a big role in helping to further enhance standards and, as an association, we are working on upcoming plans that will go a long way in continuing to grow awareness and consideration of bridging finance amongst brokers and customers.”

Q1 2024 Trends

Highlighted trends:

Quarter ended

31 Mar 2024 compared to Quarter ended 31 Dec 2023

Quarter ended

31 Mar 2024 compared to Quarter ended 31 Mar 2023

Year ended

31 Mar 2024 compared to

Year ended

31 Mar 2023

Loans written (£) (10.5%) +6.2% +11.7%
Loan book (£)* +6.8%* +19.3%*  +19.3%*
Applications (£) +17.5% +15.4%  +17.5%

*As at the end of the period 

Press Release, Friday 31st May 2024