Bridging lending remains resilient as borrower demand continues to rise
09 March 2026
Applications increase while loan books remain above £13bn
The bridging sector continued to demonstrate resilience in the final quarter of 2025, with borrower demand rising and lending volumes remaining at historically strong levels, according to the latest data from the Bridging & Development Lenders Association (BDLA).
These results were excellent against a backdrop of uncertainty surrounding the Autumn Budget, which created a downturn in confidence through October and November. Despite this, applications for bridging finance reached £11.7 billion in the three months to the end of December, representing a 2.6% increase on Q3 2025 and highlighting continued demand for short-term property finance.
Completions totalled just under £2.5 billion, representing a modest 2.1% reduction on the previous quarter, while total lender loan books stood at £13.4 billion, slightly down from the record high of £13.7 billion recorded in September. Despite the small quarterly dip, loan books remain significantly elevated compared to historic levels and continue to reflect the scale and maturity of the sector.
Loans in default also fell by 6.2% quarter-on-quarter, pointing to stable loan performance and continued prudent underwriting across the market.
Development lending rose during the quarter, with £420.3 million of development loans written, up from £376.8 million in Q3. Meanwhile, second charge lending totalled £145.8 million, slightly down on the previous quarter’s £155.2 million.
Average loan-to-value ratios increased modestly to 58.6%, compared to 57.3% in the previous quarter, reflecting continued lender confidence while remaining within responsible underwriting parameters.
The BDLA’s quarterly data survey is compiled by independent auditors using figures submitted by lender members and provides one of the most comprehensive snapshots of activity within the UK bridging and development lending sector.
Adam Tyler, CEO of the BDLA, commented:
“Demand for bridging and development finance remains strong, reflecting the important role that short-term lending plays in supporting property investors, developers and homeowners who require flexible funding solutions. Our lending data for Q4 2025 is particularly pleasing given the market uncertainty cause by speculation around the Autumn Budget.
“What we are also seeing across the market is a continued shift towards quality, with brokers and borrowers increasingly choosing lenders with strong track records, robust underwriting and clear professional standards.
“That focus on professionalism and responsible lending is central to the long-term success of the sector. The reduction in loans in default this quarter is another indication that lenders are maintaining disciplined underwriting while continuing to support activity across the property market.
“The bridging sector has grown significantly in recent years, and the priority now is ensuring that growth continues in a sustainable and well-managed way. The BDLA will continue to play a key role in supporting high standards and promoting best practice across the industry.”
