New bridging loan completions totalled £2.8bn in Q1 2025, the Bridging & Development Lenders Association (BDLA) reveals.

The latest figure matches the record set in the last quarter of 2024, during a period that typically sees reduced activity due to the seasonal slowdown.

BDLA also found that new applications surged to £18.34bn, a 55.3% increase on the previous quarter, marking an unprecedented spike in demand.

The association says the latest figures reflect sustained market momentum and growing borrower confidence.

The average loan size during Q1 this year was £540,000, which is in line with the previous quarter.

Regulated bridging saw a quarter-on-quarter increase of 23%, reaching £398 million and making up 14% of total lending.

This represents a return to more typical proportions following previous fluctuations and is well below the peak levels seen during Q2 and Q3 2024, when regulated transactions accounted for 37% of all lending.

Meanwhile, development lending remained stable at £516 million.

BDLA chief executive officer Vic Jannels says: “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.

“The total value of loan books in Q1 remained relatively unchanged compared to the previous quarter.”

“However, it is worth noting that, as we have welcomed new members to the BDLA over recent months, the total loan book size of our lender members has swelled and is now just under £13bn.”

Last month, TWM Solicitors joined as Bridging & Development Lenders Association (BDLA) as an associate member.