Bridging Loan Applications Surge 55% in Q1
The bridging finance sector kicked off 2025 with a bang, as new applications soared by an astonishing 55.3% compared to the previous quarter – totalling a record-breaking £18.34bn in Q1, according to the latest data from the BDLA.
Here at FS Panel, we’ve been monitoring the pulse of the specialist finance market, and these figures are not just numbers – they’re a powerful signal of what could be an exceptionally active year for short-term lending.
Resilient Completions Maintain Momentum
While application volumes rocketed, completions also held firm at £2.8bn – matching the record set in Q4 2024. For what is typically the slowest quarter of the year, this stability is striking.
As Vic Jannels, CEO of the BDLA, put it:
“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.”
Loan Book Growth Reflects Industry Confidence
Although the total value of outstanding loan books remained broadly flat compared to the previous quarter, the overall size of BDLA member loan books has grown significantly. With new lenders joining the association, the cumulative loan book now sits just shy of £13bn.
The average loan size in Q1 was reported at £540,000, demonstrating the ongoing demand for larger, often time-sensitive funding solutions.
Regulated and Development Lending Trends
Other key insights from the BDLA report include:
Regulated bridging saw a 23% quarter-on-quarter rise, reaching £398m – accounting for 14% of all lending.
Development lending remained stable at £516m, suggesting continued appetite for property-backed projects amid ongoing market adjustment.
What This Means for the Market
At FS Panel, we see these numbers as more than just a post-festive bounce. The significant rise in applications – coupled with resilient completions – suggests a strong pipeline of deals for Q2 and Q3 2025.
Lenders and brokers should be preparing for increased activity and ensuring operational readiness to handle a possible surge in conversions.
Stay tuned to FS Panel for ongoing analysis as the market evolves – and if Q1 is anything to go by, 2025 could be a landmark year for bridging finance.