Bridging loan books hit another record high in the last quarter of 2024, according to the Association of Short Term Lenders (ASTL).

Its latest data shows an increase in completions in the fourth quarter of 2023, rising by 18.4% on the third quarter of the year to reach £1.69bn.

Loan books also continued to rise over this three month period, increasing by 4.2% to reach a new high of £7.6bn. This is an increase of more than 16% on the same period the previous year.

ASTL’s figures — based on audited data provided by members — show bridging applications fell slightly. Figures for the fourth quarter were down by 1.1%, when compared to the previous three month period. In total they stood at £9.6bn for Q4. 

However despite this slight contraction, application figures still remain 25% higher when compared to the equivalent quarter the year before. 

Overall the ASTL data shows the average LTVs for these bridging loans increased over this period, up to 58.7%, from 57.7% in the third quarter of the year.

This comes on the back of a period of growth in the bridging market

ASTL CEO Vic Jannels says: “The short term lending market has ended the year strongly, with a fairly large increase in loans written and only a small reduction in the level of applications compared to last quarter.

“However, compared to the same period the previous year, application volumes were more than 25% higher in Q4 2023, completions increased by more than 18% and loan books grew by over 16%. Member loan books have now surpassed £7bn for the thirds consecutive quarter, setting a new record.

“We believe there is great potential for further, sustainable growth in the market and initiatives such as the Certified Practitioner in Specialist Property Finance (CPSP) will play a big role in helping to achieve this.” 

He adds that the ASTL will continue to raise awareness of bridging finance options amongst brokers and customers.