The latest figures from the Bridging & Development Lenders Association (BDLA) show a massive boom in bridging loans, with loan books reaching £8.4 billion in the second quarter of 2024.

Completions Hit Record High

This growth is driven by a rise in bridging loan completions, which reached a record £1.74 billion in the second quarter – that’s a massive 15.4% increase on the previous three months. This means more property projects are getting off the ground thanks to the flexibility and speed of bridging loans.

Loan Books Expand

Overall, bridging loan books grew by a healthy 2.9% from £8.1 billion to just under £8.4 billion. This shows that lenders are confident about the future of the market and are ready to support more property projects.

Development Loans Remain Strong

While applications did dip slightly in the second quarter, the figures still show strong demand for bridging and development loans. In fact, £443.7 million was lent for development projects in the second quarter, demonstrating the sector’s continued commitment to funding new ventures.

Vic Jannels, CEO of the BDLA, had this to say:

“The latest figures highlight the vital role bridging and development lenders play in driving property market activity. This growth is a testament to the sector’s resilience and adaptability. We are seeing a strong demand for both bridging and development loans, which is a positive sign for the wider property market.”

A Bright Future For Property

The BDLA highlights the increasing number of professionals gaining certification in specialist property finance, which further demonstrates the growing confidence and expertise within the bridging and development lending market. This means more opportunities for developers and investors to secure funding for their projects and continue to drive growth in the UK property market.