The figures — from data provided by members of the ASTL — show that bridging completions were at £1.3bn in the second quarter of the year, representing a slight fall of 5.3% on the previous quarter ending March 2023.

This small drop was reflected in applications, which were at £9.2bn in the quarter ending June 2023 — a decrease of 5.9% compared to Q1.

Average LTVs fell slightly to 57.8% in Q2, which is a reduction from 59.3% in the previous quarter.

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Vic Jannels, CEO at the ASTL (pictured above), said: “The short-term lending sector continued to demonstrate its versatility and resilience in the second quarter of this year, during which period members’ combined loan books have exceeded £7bn for the first time.

“While applications and completions were slightly down on the previous quarter, they were both higher than the same period last year.

“Given that we are still faced with the vagaries of an uncertain economy and faltering property market, this represents another very strong performance.

“We cannot ignore the wider economic environment, which is putting greater pressure on exit strategies and so it’s important that lenders continue to take a robust approach to underwriting, to help ensure the market continues to grow in a cautious and sustainable way. 

“In doing this, the market will be well placed to help even more customers to finance transitional periods in the future."