"Our lending data for Q4 2025 is particularly pleasing given the market uncertainty caused by speculation around the Autumn Budget."
- Adam Tyler - BDLA
Borrower demand in the bridging sector rose in the final quarter of 2025, with lending volumes remaining at historically strong levels, according to data from the Bridging & Development Lenders Association (BDLA).
Applications for bridging finance reached £11.7 billion in the three months to the end of December, a 2.6% increase on Q3 2025, despite uncertainty around the Autumn Budget dampening confidence through October and November.
Completions totalled just under £2.5 billion, a modest 2.1% reduction on the previous quarter, while total lender loan books stood at £13.4 billion, slightly down from the record £13.7 billion recorded in September. Though loan books dipped marginally quarter-on-quarter, they remain well above historic levels and reflect the sector's scale and maturity.
Defaults fell 6.2% quarter-on-quarter, pointing to stable loan performance and disciplined underwriting across the market. Average loan-to-value ratios edged up to 58.6% from 57.3% the previous quarter, suggesting continued lender confidence within responsible lending parameters.
Development lending grew during the quarter, with £420.3 million written, up from £376.8 million in Q3. Second charge lending came in at £145.8 million, slightly below the previous quarter's £155.2 million.
The BDLA compiles its quarterly data survey through independent auditors using figures submitted by lender members, making it one of the most comprehensive snapshots of activity in the UK bridging and development lending sector.
"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," said Adam Tyler, chief executive officer of the BDLA (pictured). "Our lending data for Q4 2025 is particularly pleasing given the market uncertainty caused 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."
