Bridging loan books reached record levels in Q2 2024, growing to nearly £8.4 billion, according to the latest data from the Bridging & Development Lenders Association (BDLA).

Auditors compiled the figures using data provided by BDLA members, showing that bridging completions hit a record £1.74 billion in Q2, marking a 15.4% increase compared to the first quarter. This surge contributed to a 2.9% rise in the total loan book size, which grew from £8.1 billion to just under £8.4 billion.

Although applications decreased by 9.9% in the second quarter compared to the previous three months, they still amounted to £10.2 billion.

The lending figures for bridging completions in the June 2024 quarter included £108.2 million of development loans. Additionally, BDLA members issued £335.5 million in non-bridging development loans, bringing the total development lending for the quarter to £443.7 million. This marks a slight decrease from the £445.1 million recorded in the previous quarter.

Q2 Bridging Loan Trends 2024
	Qtr 30 Jun24 Vs. 31 Mar24	Qtr 30 Jun24 Vs. 30 Jun23	YE 30 Jun24 Vs. 30 Jun23
Loans Written (£)	+15.4%	+29.4%	+16.5%
Loan Book (£)*	+2.9%*	+16.9%*	+16.9%
Applications (£)	-9.9%	+10.6%	+14.7%

*As at the end of the period **This research was based on BDLA members and only represents part of the market.

Vic Jannels, CEO of the BDLA says:

“The latest lending data from members of the BDLA shows record completions and overall loan book values in the second quarter of 2024, providing further evidence of the continued growth of the bridging and development lending sector.
“Despite the challenges faced in the broader economic landscape, the significant increase in bridging completions, ongoing growth in loan books and the sustained demand for development loans highlight the vital role our members play in driving property market activity. And the future for our sector looks incredibly positive as the continued success of the Certified Practitioner in Specialist Property Finance (CPSP) demonstrates a growing number of professionals who are committed to demonstrating their expertise through this accreditation.
“The more we can build on this momentum, the greater awareness we can bring to the versatile benefits of short-term property lending and the more opportunities we can deliver to intermediaries to help their clients finance their property objectives.”

Bridging Loan Market Changes

Onyx has also seen a recent rise in bridging loan enquiries for property development and investment purposes. These month-on-month bridging loan requests are in-line with the rises seen in the industry.

Onyx CEO, Dan Richards said:

“It is great to see the obvious growth that the bridging loan market is experiencing. Many investors are looking for ways to quickly build on their portfolios and bridging loans are the perfect answer before selling or refinancing. Following last year's growth, I will say again - ‘long may this trend continue’”.

Onyx is dedicated to keeping on top of all trends and concerns and reacting accordingly. We are pleased to continue to offer the same rates of interest regardless of the Bank of England Base Rate, offering competitive LTVs of up to 75%.

Onyx has extensive knowledge in offering bridging loans to suit all purposes. We are experts in the field of providing financial solutions for property professionals in a range of circumstances. Speak to us today and get your project up and running before you know it: info@onyxmoney.co.uk.