GITNUX MARKETDATA REPORT 2024

Bridging Finance Industry Statistics

Bridging finance industry is growing rapidly, with a steady increase in the number of loans being provided and a rise in demand due to quick access to funds and flexibility compared to traditional financing options.

In this post, we examine key statistics shaping the bridging finance industry in the UK, shedding light on its growth, trends, and challenges. From the industry’s value to loan characteristics, default rates, and market shifts, these insights provide a comprehensive overview of the dynamic landscape of bridging finance.

Statistic 1

"In 2014, the bridging finance industry was worth £2.2 billion."

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Statistic 2

"By 2019, the UK's bridging finance industry had grown to £4.5 billion."

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Statistic 3

"A 2018 report revealed that the bridging finance sector had an average loan-to-value (LTV) ratio of 49.1%."

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Statistic 4

"The average bridging loan was £595,000 in Q1 2021."

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Statistic 5

"The average term for a bridging loan in 2017 was 11 months."

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Statistic 6

"Upon surveying 144 bridging finance brokers, about 60% reported growth in the industry."

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Statistic 7

"Bridging loans for auction properties rose by 14% in Q1 2021."

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Statistic 8

"In 2019, the South East surpassed London as the region with the highest demand for bridging loans."

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Statistic 9

"The bridging sector recorded a default rate of 0.84% in H1 2020."

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Statistic 10

"Average monthly interest rates for bridging loans fell to 0.74% in Q3 2021."

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Statistic 11

"In 2019, nearly 80% of bridging finance was regulated."

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Statistic 12

"Semi-commercial property was the most popular sector of loans in 2020, representing 37.2% of all loans."

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Statistic 13

"Demand for bridging loans increased by approximately 20% post-Brexit."

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Statistic 14

"In 2020, 20% of bridging loan applications were for commercial properties."

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Statistic 15

"The demand for bridging loans dropped by nearly 14% during the first wave of the Covid-19 pandemic."

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Statistic 16

"Approximately two-thirds of all bridging loans in 2019 were for amounts of £500,000 or less."

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Statistic 17

"Nearly 60% of brokers surveyed believed the demand for bridging finance would increase due to economic uncertainty in 2020."

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Statistic 18

"In 2019, the average rate for a bridging loan was 0.95% per month."

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Statistic 19

"The bridging loan completion rate increased to 84% in Q3 2020, up by 2% from the previous quarter."

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The bridging finance industry in the UK has shown remarkable growth and resilience over the years, with substantial increases in market value, demand for various loan types, and shifts in regional preferences. Despite fluctuations in demand due to external factors like Brexit and the Covid-19 pandemic, the sector has adapted and demonstrated stability with low default rates and improving completion rates. The industry’s response to economic uncertainties and changing market conditions highlights its ability to evolve and meet the diverse needs of borrowers and investors.

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