The Intermediary – March 2025 - Flipbook - Page 14
SPECIALIST FINANCE
In focus
£10bn and climbing
– the ongoing rise
of bridging
B
ridging lending
has reached new
milestones, with
the latest data from
the Bridging &
Development Lenders
Association (BDLA) showing recordbreaking volumes in the final quarter
of 2024.
The BDLA’s data revealed that
bridging completions surged to an
unprecedented £2.30bn, representing
a 28.6% increase from the previous
quarter and a 36.4% rise year-on-year.
More significantly, total bridging
loan books have now exceeded £10bn
for the first time, demonstrating the
sector’s continued ability to support
growing borrower demand.
This remarkable trajectory is
a direct result of the speed and
flexibility that bridging finance offers
– both important during a period
of change.
Bridging provides finance to bridge a
transitional period of uncertainty. We
can all agree that there’s a great deal of
uncertainty in the economy and the
world in general at the moment. More
people are turning to bridging when it
makes sense to fund their objectives.
Property investors are using it to
complete time-sensitive transactions,
developers to fund refurbishment
projects, and homeowners to secure
chain-saving solutions. Increasing
confidence in the market is further
reflected in a 3.9% quarterly rise in
applications, totalling £11.30bn.
As demand grows, so too does the
BDLA’s role in supporting lenders,
brokers, and borrowers.
Growth and compliance
As a trade association, our role is not
only to promote growth in the market,
but protect the interests of our
members. Fraud is an ever-evolving
14
The Intermediary | March 2025
threat that can cause significant
financial and reputational harm to
lenders and borrowers alike, and we
have made tackling it a key priority
for 2025.
We are now working on the
development of an ‘early warning’
fraud intelligence-sharing system
tailored to the short-term lending
market. This is aimed at helping
lenders identify fraudulent
applications before they progress to
formal application and underwriting.
Importantly, this system will comply
with all data protection regulations to
ensure secure information sharing.
BDLA members already benefit
from access to established fraud
detection tools such as National
Hunter, SIRA, Synectics and
NIVO, but we are keen to explore
partnerships and technologies to
deliver red-flag indicators that lenders
can use to identify fraudulent activity
in its early stages.
Regulation remains another key
area of engagement, and we continue
to work closely with policymakers
at HM Treasury and the Financial
Conduct Authority (FCA) to ensure
that bridging lenders are fairly
represented in regulatory discussions.
While appropriate oversight is
welcomed to promote stability and
transparency, proposals such as
the Financial Conduct Authority’s
(FCA) CP 24/2 consultation, which
suggests publicly naming firms
under investigation before any
wrongdoing is proven, are being
actively challenged. Such an approach
could lead to significant reputational
damage for businesses, even if no
misconduct is ultimately found.
We, like others, worry about the ’no
smoke without fire’ adage. The BDLA
continues to advocate for a regulatory
framework that protects borrowers
VIC JANNELS
is CEO at the BDLA
while enabling the sector to thrive
without unnecessary barriers.
One of the ways we have supported
higher standards alongside growing
volumes in the market is, of course,
the Certified Practitioner in Specialist
Property Finance (CPSP) qualification,
launched in 2023. CPSP has rapidly
gained traction, and has now reached
1,000 registrations, with nearly 400
individuals having successfully gained
accreditation. Specialist property
finance professionals are embracing
the value of structured education, and
we expect the number studying and
passing CPSP will continue to grow.
The bridging sector has never been
stronger, and the BDLA remains
commied to ensuring its continued
evolution in a way that benefits
lenders, brokers, and borrowers alike.
The outlook for 2025 is incredibly
positive, and we anticipate continued
growth in lending volumes, driven
by demand for development finance,
refurbishment projects, and
investment in property conversions.
Additionally, we expect the trend
of institutional investment in
bridging finance to continue, further
strengthening the industry.
Collaboration will be crucial,
whether it is tackling fraud, shaping
fair regulatory policies, or driving
professional development.
The record-breaking data from
Q4 2024 is not just a reflection of
past success, but testament to the
opportunities ahead. We will continue
to champion the interests of the
bridging sector, ensuring that it
remains a thriving and trusted market
for years to come. ●
