Bridging figures rose in the final three months of the previous year
![Bridging sustains growth in Q4 2022, says ASTL](https://cdn-res.keymedia.com/cdn-cgi/image/w=1000,h=600,f=auto/https://cdn-res.keymedia.com/cms/images/us/077/0311_638152459952588952.png)
Bridging application numbers continued to rise and loan books continued to grow in the fourth quarter of 2022, the Association of Short Term Lenders (ASTL) has reported.
According to the latest figures compiled by auditors from data provided by ASTL members, bridging applications rose by 9.1% to £8.6 billion worth of applications during the quarter.
Bridging loan books also grew in the final three months of the year, rising by 6.4% on Q3 and reaching a new high of just over £6.5 billion.
However, the value of completions fell to £1.3 billion in Q4 2022, down by 10.4% on the third quarter of the year. Despite this decrease, bridging completions have now been more than £1 billion for seven consecutive quarters.
Overall, in 2022, bridging completions increased by 15.5% on 2021, while bridging loan books grew by 28.9% on the same period. The value of applications dropped by 13.9%.
“Given the economic turbulence experienced during the final quarter of 2022, it is perhaps unsurprising that we saw a slight dip in the value of applications for bridging finance,” said Vic Jannels, chief executive at the Association of Short Term Lenders. “However, bridging completions and loan books continued their strong upward trajectory, demonstrating sustained growth in the market.
“If you look at 2022 figures as a whole, compared to 2021, the value of bridging loan books has increased by almost 29%. Anecdotal feedback from the market for the first few weeks of 2023 indicates that, while activity is perhaps a little quieter than the early part of 2022, demand is still strong as more customers realise the benefits of securing short-term finance as a way of helping them to achieve their goals.”
Jannels (pictured) added that the outlook remained uncertain, but noted that the bridging market had shown resilience and sustainable growth.
“With lender members of the ASTL continuing to commit to our strict Code of Conduct, we are confident that underwriting standards are robust and well-equipped to deal with the challenges ahead,” he stated. “We can also look forward to the upcoming launch of the Certified Practitioner in Specialist Property Finance (CPSP) optional e-learning programme, which we are delivering alongside our colleagues at the Financial Intermediary and Broker Association (FIBA) and the London Institute of Banking & Finance (LIBF), which will help to further raise standards and support the sustained growth of the sector.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter.