Bridging completions fell by 8.9% in the three months to the end of June, totalling £2.3bn, the Bridging & Development Lending Association (BDLA) has revealed.

The association’s latest data also found that bridging applications dropped by 1.5% in the same period to £2.3bn, indicating what the BDLA described as a "slight cooling" in bridging lending activity.

Despite this, both metrics were above the levels recorded in Q2 2024, with completions and applications increasing by 32.9% and 0.1% year-on-year, respectively.

Meanwhile, lender loan books continued to rise, reaching a new record high of £13.1bn, which is a 1.9% quarter-on-quarter increase.

The BDLA said its latest data "paints a picture of a stabilising market" after a surge in activity at the start of the year.

Development lending for the quarter dropped by over 19% quarter-on-quarter to £416.7m, while second charge lending increase by almost 11% to £135.4m in the same period.

The data also revealed that average LTVs dropped slightly to 56.7%, which the association said "reflects a robust approach" to underwriting amid wider economic uncertainty.

Chief executive officer at the BDLA, Vic Jannels, 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."

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