Activity dropped in the first quarter of 2016, with the value of loans falling by 9% from Q4 2015 to Q1 2016.
Association of Short Term Lenders members upped their bridging lending volumes by 16% in the year to 31 March 2016 compared to the equivalent period the year before.
The value of bridging lending also increased by 20% to £2.7bn.
Benson Hersch (pictured), chief executive of the ASTL, said: “Bridging finance continues to power forward and is now an established niche product. Members are positive about their business prospects, even if slightly less positive about the economy as a whole.
“Figures on the economy released last week do cause me to sound a note of caution however and there remains some concern, due to the uncertainty about the results of the June referendum, which may yet have an unknown effect on the market.
“As applications begin to pick up over the next quarter, despite some negative factors, the need for bridging finance is likely to continue to grow and our members are well placed to take advantage of opportunities.”
Activity dropped in the first quarter of 2016, with the value of loans falling by 9% from Q4 2015 to Q1 2016.
However they fell by a more significant 19% in the equivalent period the year before, suggesting the slowdown between the quarters is seasonal.
