The latest quarterly data from the Bridging & Development Lenders Association (BDLA) shows a slight cooling in bridging lending activity during Q2 2025 following a period of record highs, though the longer-term trajectory remains firmly positive.
Completions totalled £2.3 billion in the three months to the end of June, representing an 8.9% fall on the Q1 total of £2.8 billion. Applications were also down slightly at £10.2 billion, a 1.5% decline on the previous quarter. Despite this, both metrics remain significantly above the levels recorded in Q2 2024, with completions up by 32.9% year-on-year and applications up 0.1%.
Meanwhile, lender loan books continued their upward climb, reaching a new record high of £13.1 billion – a 1.9% increase on the previous quarter.
Compiled by independent auditors using submissions from BDLA members, the data paints a picture of a stabilising market, following the surge in activity at the beginning of the year.
Vic Jannels, CEO of the BDLA, commented:
“After a record-breaking first quarter, it’s not unexpected to see a modest step back in activity as the market consolidates. What’s important is the continued growth in loan books and the year-on-year uplift across most metrics, which reflect sustained borrower demand and lender resilience.
“We also saw a welcome drop in the value of loans in default, which fell 1.8% quarter-on-quarter, indicating stable loan performance and prudent underwriting by our members.”
Development lending for the quarter stood at £416.7 million, down from £516.1 million in Q1, while second charge lending rose to £135.4 million, up from £122.1 million the previous quarter.
Average loan-to-values (LTVs) edged down slightly to 56.7%, reflecting a robust approach to underwriting amid wider economic uncertainty.
