Q1 completions hit £2.8 billion as applications surge over 55%
The UK bridging finance market maintained momentum in early 2025, the latest figures from the Bridging & Development Lenders Association (BDLA) have shown, defying seasonal expectations with record-level lending activity.
Bridging loan completions reached £2.8 billion in the first quarter of 2025, equalling the high seen in the final quarter of 2024 — a period typically characterised by reduced lending due to seasonal trends.
New loan applications jumped by 55.3% from the previous quarter to £18.34 billion, signalling strong borrower demand.
The average loan size remained steady at £540,000, consistent with Q4 2024 figures. Regulated bridging loans increased by 23% on a quarterly basis to £398 million, accounting for 14% of total activity. While still below the peak levels of Q2 and Q3 last year, the share of regulated lending appears to have returned to more typical levels. Development finance also remained flat at £516 million.
The BDLA said the data, compiled by independent auditors using input from its member firms, reflects steady confidence and continued growth across the sector.
Separate research from Bridging Trends echoed the BDLA’s findings, with data suggesting sustained demand in the first three months of the year. Completion times were also reported to be the fastest on record.
Forecasts from West One Loans suggest the market is poised for further expansion, with total bridging loan books expected to hit £12.2 billion by year-end.
“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,” said Vic Jannels (pictured), chief executive of the Bridging & Development Lenders Association. “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.
“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 £13 billion.”
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