The latest figures from the Bridging & Development Lenders Association (BDLA) show this was on par with loans written in the prior quarter.
However, it is up from the £1.51bn reported in Q1 2024.
The BDLA added that the number of bridging applications received was also strong, at around £18.34bn, which is up from £11.81bn in Q4 2024. It is also up on £11.3bn in Q1 last year.
On the loan book side, cumulative loan books stand at around £12.96bn, up on £12.4bn in the prior quarter and £8.1bn in Q1 last year.
The BDLA’s data also shows that the average loan size was £540,000 during the first quarter of this year, which is in line with the previous quarter.
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The figures also show that regulated bridging grew quarter-on-quarter by 23%, reaching £398m and making up 14% of total lending.
The BDLA said 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.
Development lending remained stable at £516m, the data showed.
Vic Jannels, CEO of the BDLA, said: “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.”
