Record applications signal a boom for Bridging market in 2025
The bridging finance sector has kicked off 2025 with remarkable force, defying the usual Q1 slowdown to build on the momentum from late 2024. The latest quarterly data from the Bridging & Development Lenders Association (BDLA) reveals a market brimming with confidence and an unprecedented surge in demand.
For brokers and lenders, these figures point towards a period of significant opportunity, where efficiency and robust partnerships will be key to success.
A Closer Look at the Q1 Data
The report, compiled by independent auditors from BDLA member data, highlights several key trends:
Record-Matching Completions: New bridging loan completions held strong at £2.8 billion, matching the record high set in Q4 2024. Achieving this during what is traditionally the quietest quarter of the year underscores the market's underlying resilience.
Unprecedented Application Surge: The most striking figure is the value of new applications, which soared to £18.34 billion. This represents a staggering 55.3% increase on the previous quarter, indicating a massive pipeline of potential business for the months ahead.
Return to Norms in Regulated Bridging: Regulated bridging saw a healthy quarter-on-quarter increase of 23%, reaching £398 million. This accounts for 14% of total lending, marking a return to more typical market proportions after the unusual peaks seen in mid-2024.
Stable Loan Sizes: The average loan size remained consistent at £540,000, while development lending also held steady at £516 million.
What This Means for the Market
Vic Jannels, CEO of the BDLA, commented on the impressive results, stating, "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."
He added, "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."
Our Perspective at FS Panel Management
This surge in activity is a clear indicator of growing borrower confidence and a revitalised property market. For our broker partners, this translates into a significant opportunity to serve more clients.
However, such a dramatic increase in application volume will inevitably place greater demand on lender and solicitor resources. In a high-volume market, speed and reliability are paramount. Delays in valuation, legal processing, or underwriting can make all the difference.
This is where streamlined processes and effective panel management become critical. At FS Panel Management, we are prepared for this increase in activity. Our established network and efficient workflows are designed to help our partners navigate the busiest of markets, ensuring a smooth and timely journey from application to completion.
As the data suggests a record-breaking year ahead, we are committed to providing the robust support our partners need to capitalise on the opportunities it presents.
Get a quote from FS here.