Bridging Finance Holds Its Ground: BDLA Data Points to Stability

Introduction

While Q1 was record-breaking, the latest figures from the Bridging & Development Lenders Association (BDLA) show a cooling of some metrics but overall robustness in the bridging finance sector. In this post, Bridging & Commercial’s Tara Sammons, drawing on commentary from BDLA CEO Vic Jannels, walks us through what the data tells us — and why lenders and borrowers alike have reason to feel cautiously optimistic.

1. Key Numbers at a Glance

   • Completions up ~32.9% year-on-year.

   • Applications are roughly flat, marginally up (~0.1%).

   • Total lender loan books reaching £13.1 billion, up 1.9% quarter-on-quarter.

2. Segment Analysis

   • Development lending dropped (Q2 vs Q1): £416.7m down from £516.1m.

   • Second charge lending increasing: £135.4m.

   • Loan-to-value (LTV) holding steady, slightly down: averages ~56.7%.

3. Loan Performance & Risk

   • Defaults declining: a 1.8% drop quarter-on-quarter.

   • Overall, despite economic pressures, credit quality remains stable.

4. Commentary from BDLA

   • Vic Jannels: after a strong Q1, some pullback is natural.

   • Emphasis on solid fundamentals: borrower demand, lender discipline.

   • Caution remains around cost pressures, interest rates, but the sector is adapting.

Conclusion

Though certain indicators are cooling from earlier highs, the broader picture shows a bridging finance market that is steady rather than shaky. Lenders are maintaining discipline, defaults are falling, and despite cautiousness, there is still momentum. The path forward will depend heavily on how cost pressures and macroeconomic conditions evolve.