The bridging market continues its extraordinary growth, with the latest Q3 2024 data from the Bridging & Development Lenders Association (BDLA) showcasing record-breaking figures across completions, loan book values, and applications. Bridging completions surged to an unprecedented £1.79 billion, a 2.6% increase from the previous quarter. Loan books crossed the £9 billion milestone for the first time, growing by 7.6% to £9.01 billion, while applications rose 6.7%, reaching £10.9 billion.
These figures highlight our sector’s unique ability to deliver timely and flexible financial solutions, attracting increasing confidence from brokers and borrowers.
As more borrowers recognise the value of bridging finance for fast property purchases, conversions, and temporary funding needs, demand for this type of lending continues to rise.
Demand is growing on the other side of the lending equation as well. At the recent BDLA Annual Conference, industry leaders from Quillam Capital, J.P. Morgan, Lloyds Banking Group, and Shawbrook Bank discussed the evolving capital landscape for specialist mortgages. The consensus was clear – 2025 is expected to see further growth in capital investment for bridging lenders, with increasing appetite from funding organisations. During the discussion, they did however stress the importance of maintaining disciplined underwriting, effective collections processes, and leveraging data-driven decision-making to appeal to capital providers. This robust approach to lending, coupled with a committed focus on the needs of the customer will be vital to the ongoing growth of the bridging market.
Sustainability remains a key priority for the BDLA, and we are committed to promoting responsible lending practices through out strict membership rules and codes of conduct. The Certified Practitioner in Specialist Property Finance (CPSP) accreditation is gaining traction, equipping advisers with the knowledge and expertise to deliver better outcomes for consumers. More advisers are expected to complete this program in 2025, ensuring the sector continues to uphold the highest standards of professionalism and trust. Additionally, the BDLA’s collaboration with regulators to tackle challenges such as fraud further enhances the industry’s resilience and ethical standing.
Government initiatives focused on increasing housing supply present another growth opportunity for bridging finance. Development and refurbishment finance, particularly for converting existing buildings into residential spaces, are expected to play a critical role in addressing the country’s housing needs. A stable political environment, coupled with the potential for interest rate reductions in 2025, offers further reasons for optimism, with lower borrowing costs likely to boost activity in the property market.
Looking ahead, the bridging market is well-positioned for continued growth by focusing on strong fundamentals, maintaining high standards, and embracing innovation. With sustained momentum, 2025 holds exciting prospects for lenders, brokers, and borrowers alike.
Vic Jannels, CEO at the BDLA
Press Release, Business Moneyfacts – January 2025