The bridging sector showed continued resilience in the final three months of 2025 as borrower demand increased and lending volumes remained historically strong, according to the latest data from the Bridging & Development Lenders Association (BDLA).
The figures come despite uncertainty surrounding the Autumn Budget, which weighed on confidence during October and November.
Applications for bridging finance reached £11.7bn in the three months to the end of December, a 2.6% increase on the previous quarter and further evidence of sustained demand for short-term property finance.
Completions totalled just under £2.5bn, representing a modest 2.1% decline on Q3 2025.
LOAN BOOKS
Total lender loan books stood at £13.4bn at the end of the quarter, slightly down from the record high of £13.7bn recorded in September. However, despite the small quarterly fall, loan books remain significantly elevated compared with historic levels.
Loan performance also improved during the quarter, with loans in default falling by 6.2% compared with the previous three months.
Development lending rose to £420.3m during the quarter, up from £376.8m in Q3. Meanwhile, second charge lending totalled £145.8m, slightly below the £155.2m recorded in the previous quarter.
Average loan-to-value ratios increased modestly to 58.6%, compared with 57.3% in Q3, reflecting continued lender confidence while remaining within responsible underwriting parameters.
MARKET DEMAND REMAINS STRONG
The BDLA’s quarterly data survey is compiled by independent auditors using figures submitted by lender members and provides one of the most comprehensive snapshots of activity within the UK bridging and development lending sector.
Adam Tyler (pictured), chief executive of the BDLA, said: “Demand for bridging and development finance remains strong, reflecting the important role that short-term lending plays in supporting property investors, developers and homeowners who require flexible funding solutions.
“Our lending data for Q4 2025 is particularly pleasing given the market uncertainty cause by speculation around the Autumn Budget.
“What we are also seeing across the market is a continued shift towards quality, with brokers and borrowers increasingly choosing lenders with strong track records, robust underwriting and clear professional standards.
“That focus on professionalism and responsible lending is central to the long-term success of the sector.
“The reduction in loans in default this quarter is another indication that lenders are maintaining disciplined underwriting while continuing to support activity across the property market.
“The bridging sector has grown significantly in recent years, and the priority now is ensuring that growth continues in a sustainable and well-managed way.
“The BDLA will continue to play a key role in supporting high standards and promoting best practice across the industry.”
