Although there was uncertainty after the Autumn Budget, the results prior to the Budget were excellent. There was a downturn in confidence following the announcement of the Budget in October and November, but applications for bridging finance through the months of October to December reached £11.7bn, which was a 2.6% increase from the previous three months.
The total completions in the final three months of the year were slightly less than £2.5bn, which was a 2.1% reduction from July to September 2025. Total loan books were slightly down from the record high of £13.7bn in September to £13.4bn in December. However, loan books remained elevated compared to historical levels, which shows the growing scale of this sector.
As well as this, loans fell by 6.2% from the first quarter of the year to the end, which highlights the stable loan performance.
Development lending rose in the final quarter of the year, with £420.3m of development loans written up, compared to £376.8m in the third quarter of the year. Average loan-to-value (LTV) ratios also saw an increase in the final quarter of the year, up from 57.3% to 58.6%.
Adam Tyler, CEO of the BDLA, said: “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. Our lending data for Q4 2025 is particularly pleasing, given the market uncertainty cause 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.”
Tyler added: “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.”
The report comes following the BDLA’s appointment of Tyler as its CEO in November 2025.
