More buyers and sellers turn to bridging to avoid chain collapse
Homebuyers and sellers lost an estimated £275.5 million in the first quarter of 2025 due to failed property transactions, according to new data released by West One Loans.
The specialist lender, which analysed figures from TwentyCI, reported 78,855 property fall-throughs between January and March — an 11.6% increase from the previous quarter and up 23.5% year-on-year. Each failed transaction cost those involved an average of £3,493.
The report points to a rise in market activity and the lead-up to the March 31 stamp duty deadline as key drivers of the volatility.
“While bridging finance has long been viewed as a specialist tool for more niche segments of the market such as property investors and auction buyers, we’re seeing a clear shift in how it’s being used,” said Thomas Cantor (pictured), co-head of short-term finance at West One Loans, noting that more homebuyers and sellers are now relying on bridging finance to complete their transactions when chains fall through.
Bridging Trends data supports this, showing that chain breaks have remained the top or second most cited reason for taking out a bridging loan for the past four quarters.
According to West One Loans, the total cost of fall-throughs has risen 13.2% since Q4 2024 and 27.9% year-on-year, in line with the growing use of bridging as a back-up solution. In response to this demand, the lender has introduced new limited edition rates aimed at regulated transactions.
Cantor said bridging finance is becoming more mainstream. “In today’s competitive market, speed and certainty are paramount — and this is where bridging really comes into its own,” he added.
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