"Q1 is traditionally the quietest quarter of the year, so to maintain the record completion levels seen in Q4 2024 is a strong indicator of continued resilience in the market"
- Vic Jannels - BDLA
The bridging finance sector began 2025 on strong footing, with the latest data from the Bridging & Development Lenders Association (BDLA) showing record-level completions and a sharp increase in new applications.
Figures for the first quarter show new bridging loan completions totalling £2.8 billion, matching the previous high set in Q4 2024. This performance came during a period that typically sees reduced lending activity due to seasonal slowdowns.
New applications surged by 55.3% on the previous quarter to £18.34 billion, marking the largest quarterly increase on record, based on data compiled by independent auditors from BDLA member submissions.
“Q1 is traditionally the quietest quarter of the year, so to maintain the record completion levels seen in Q4 2024 is a strong indicator of continued resilience in the market," noted BDLA chief executive Vic Jannels "The sheer scale of the rise in applications is striking and, if even only a portion of these applications convert, we could see lending volumes reach new heights over the next two quarters.”
He added, “The total value of loan books in Q1 remained relatively unchanged compared to the previous quarter. However, it is worth noting that, as we have welcomed new members to the BDLA over recent months, the total loan book size of our lender members has swelled and is now just under £13bn.”
According to the BDLA, the average loan size for the quarter stood at £540,000, consistent with Q4 2024. Regulated bridging lending rose by 23% quarter-on-quarter to £398 million, accounting for 14% of total activity. While this marks a return to more typical proportions, it is well below the peak observed during Q2 and Q3 2024, when regulated loans made up 37% of all lending.
Development lending remained stable at £516 million, reflecting a steady appetite for project finance amid broader market consistency.
