The specialist lending market continues to go from strength-to-strength. New bridging loan completions totalled £2.8bn in Q1 2025, while new applications jumped to £18.34bn.
This was a rise of 55.3% on the prior quarter according to the Bridging & Development Lenders Association (BDLA). The industry’s total loan book size has also risen to nearly £13bn, the highest it’s been since at least Q1 2023.
This growth indicates market momentum, and growing borrower confidence. But why exactly is demand for specialist finance on the rise? Well, it appears borrowers are simply increasingly recognising the utility of our market. The days of bespoke lending being viewed as a niche part of the landscape may be behind us.
According to the Q1 Bridging Trends data, borrowers are turning to bridging for support with chain breaks, auction purchases, investment purchases and more. Looking ahead, demand may only rise from here.
Take the rental market. We have the Renters’ Rights Bill looming, as well as new minimum EPCs. For landlords, adhering to all the new requirements will likely require flexible refurbishment finance that can be issued quickly ahead of tight deadlines. On the flipside of this, should landlords continue to sell up, it’ll create opportunities for expanding buyers who could use acquisition loans to jump on openings quickly.
Indeed, as part of our Q2 independent research, we surveyed a nationally representative sample of people on their BTL aspirations.
Some 33% said they would like to own a BTL property in the future and of these people 61% would like to develop a portfolio of properties so they could become a full-time landlord.
Just over half (53%) have actively taken steps to understand the rules and regulations of the market, and 54% are exploring ways of entering the market.
These aren’t just pipe dreams either. To get the ball rolling on their BTL portfolios, 52% of these respondents are setting money aside each month.
Nearly half have worked additional shifts or hours, a third are living with friends or family members to allow them to save on rent or mortgage payments, and 30% have asked for financial support from their parents or wider family.
The BTL and specialist lending market has reached unprecedented heights. Amazingly though, we may only be scratching the surface of the market’s potential.
