Pipeline activity also shows strong growth
Bridging lending in the UK hit new highs in the third quarter of this year, with data from the Bridging & Development Lenders Association (BDLA) showing increases in completions, applications, and loan book values compared to the previous quarter.
According to figures compiled by auditors from BDLA member data, bridging completions reached a record £1.79 billion in Q3, marking a 2.6% increase from Q2. This growth helped push the overall loan book value up by 7.6%, surpassing £9 billion for the first time and reaching £9.01 billion.
Pipeline activity also showed strong growth, with applications rising 6.7% in Q3 to total £10.9 billion.
“BDLA lending data for the third quarter of 2024 reflects the ongoing ascendency of our sector, with growth across the board and record values for completions and loan book sizes,” said Vic Jannels (pictured), chief executive of the Bridging & Development Lenders Association. “The continued momentum we’re reporting in our quarterly data demonstrates the growing importance of bridging and development lending as a vital cog in the UK mortgage industry.
“As more brokers and borrowers recognise the many ways that bridging finance can help them achieve their goals, we can reasonably expect our sector to continue its upward trajectory.”
The BDLA plans to release lending data on a quarterly basis, supplemented with a detailed information factsheet starting this quarter.
“Sustainable growth has to be the priority, and at the BDLA, we work with our members to promote responsible customer-centric underwriting through our membership rules and code of conduct,” Jannels said.
“On top of this, we continue to promote the benefits of attaining the Certified Practitioner in Specialist Property Finance (CPSP) accreditation, and we’re continually working with members on steps we can take to help tackle fraud, as well as our ongoing dialogue with regulators and policy makers.
“These efforts are all helping to raise standards and encourage robust lending, which is contributing to the sustainable growth we have seen in recent years and expect to see well into the future.”
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