Demand from investors for bridging finance has gathered pace as Brexit uncertainty continued to mound alongside lending restrictions on banks, data from Bridging Trends revealed.

The figures found that, for the second consecutive month, the most popular use of a bridging loan was to acquire investment property, contributing 25 per cent of all lending in Q2 2019, up from 22 per cent during Q1 2019.

The data compiled by Bridging Finance highlighted how bridging finance has become an increasingly attractive proposition to property investors who are looking to expand their portfolio. The firm suggested those investors need to move swiftly in order to capitalise on opportunities while property prices remain low.

A traditional chain-break was the second most popular use for bridging finance in the second quarter, contributing to 18 per cent of all lending. Meanwhile, bridging loans for business purposes increased to 12 per cent, rising from 8 per cent in the first quarter of 2019.

Furthermore, the figures confirmed bridging growth stabilised in the second quarter, with bridging loan volume transacted by contributors hitting £184.82m, a £500,000 decrease on the previous quarter, which saw contributors reaching £185.32m.

For the third consecutive quarter, the average term of a bridging loan remained at 12 months. Whilst the average completion time on a bridging loan application in the second quarter increased by 4 days to 44.

Commenting on the findings, MT Finance commercial director Gareth Lewis said: “Now that Boris Johnson has been announced as the new PM and has made Brexit top of his to-do list, this should help give the market the certainty it needs. If the rumours of a stamp duty overhaul are true- we expect the change to ease the pressures of regulation and excessive taxation on UK property investors. It will be interesting to see what happens over the coming months, but hopefully the sector can look forward to buoyant growth.”

Brightstar Financial short-term lending and development director Kit Thompson added: “There continues to be opportunities for property investors to grow and diversify their portfolio and bridging finance provides a fast and flexible form of funding that enables them to leverage their capital and make the most of these opportunities. This is a trend we expect to see continuing well into the future."

Bridging Trends groups together the figures from lender MT Finance and specialist finance brokers Brightstar Financial, Clever Lending, Complete FS, Enness, Impact Specialist Finance, Positive Lending, Pure Commercial Finance, Y3S, and UK Property Finance.

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