Bridging market maintains momentum in 2025

16 June 2025

The latest quarterly data from the Bridging & Development Lenders Association (BDLA) has revealed a strong start to 2025, with figures defying seasonal norms to continue the sector’s growth trajectory.

New bridging loan completions totalled £2.8 billion in Q1 2025, matching the record set in Q4 2024, during a period that typically sees reduced activity due to the seasonal slowdown. At the same time, new applications surged to £18.34 billion, a 55.3% increase on the previous quarter, marking an unprecedented spike in demand.

Compiled by independent auditors using data supplied by BDLA members, the latest figures reflect sustained market momentum and growing borrower confidence.

Vic Jannels, CEO of the BDLA, commented:

“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. 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 £13bn.”

According to the BDLA data, the average loan size was £540,000 during the first quarter 0f 2025, which is in line with the previous quarter. Regulated bridging saw a quarter-on-quarter increase of 23%, reaching £398 million and making up 14% of total lending. This represents a return to more typical proportions following previous fluctuations and is well below the peak levels seen during Q2 and Q3 2024, when regulated transactions accounted for 37% of all lending. Development lending remained stable at £516 million.