According to the latest quarterly data from the Bridging & Development Lenders Association (BDLA), applications were also down slightly at £10.5bn, a 1.5% decline on the previous quarter.
This shows a “slight cooling [in] bridging lending activity” in the second quarter, but it said the “longer-term trajectory remains firmly positive”.
The BLDA noted that both metrics were “significantly above” levels recorded in the same period last year, as completions are up 32.9% year-on-year and applications are up 0.1%.
Lender loan books continue to climb, reaching a new record high of £13.1bn, a rise of 1.9% on the previous quarter.
Development lending in the period stood at £416.7m, down from £516.1m in Q1, while second charge lending rose to £135.4m, up from £122.1m in the previous quarter.
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Average loan to values (LTVs) edged down slightly to 56.7%, reflecting a “robust approach to underwriting amid wider economic uncertainty”.
| Period | Applications received (£bn) | Loans written
(£bn) |
Loan book (£bn) |
| Q1 2023 | 11.29 | 1.84 | 8.14 |
| Q2 2023 | 10.17 | 2.08 | 8.37 |
| Q3 2023 | 10.85 | 2.09 | 9.01 |
| Q4 2024 | 11.81 | 2.8 | 12.94 |
| Q1 2025 | 10.36 | 2.8 | 12.96 |
| Q2 2025 | 10.2 | 2.3 | 13.1 |
Vic Jannels (pictured), CEO of the BDLA, said: “After a record-breaking first quarter, it’s not unexpected to see a modest step back in activity as the market consolidates. What’s important is the continued growth in loan books and the year-on-year uplift across most metrics, which reflect sustained borrower demand and lender resilience.
“We also saw a welcome drop in the value of loans in default, which fell 1.8% quarter-on-quarter, indicating stable loan performance and prudent underwriting by our members.”
