The organisation reported that its loan books had “hit a new record high”.

Commenting on the data, Vic Jannels, CEO at ASTL, said: “Bridging lending has again bucked the trend of the wider market to record a period of strong growth in the third quarter of 2023.

"Compared to the same period last year, application volumes have risen by more than 8%, completions have grown by nearly 11% and loan books have swelled by well over 18%.

“This means that member loan books have exceeded £7bn for second consecutive quarter, hitting a new record."

Despite this, earlier this month B&C reported on the declining conversion rates among its members, whereby in Q2 2023 briding conversions dropped to around 14% from circa 16% during Q2 2022.

In Q3 2023 conversion rates remained at 14% , a drop on just under 18% on the same quarter the previous year — however, conversions rates had risen in Q3 of this year from 14.12% during Q2 ’23.

B&C asked industry professionals what they thought of the latest data release from the ASTL and whether this was representative of the market as a whole.

Paresh Raja, CEO at Market Financial Solutions, said: “There has been a palpable shift in investor sentiment in the last couple of months.

“The Bank of England’s pause to the base rate hiking cycle has played a major part in this, encouraging more buyers back into the market, in addition, we have also seen an uptick in demand from BTL landlords as demand and rental values continue to grow in the PRS.

"As a result, we have seen activity levels rise in line with the new ASTL data here at Market Financial Solutions.

“We have to remember that the ASTL data is not a snapshot of the whole market, just its members — but demand for short-term finance does seem to be on the rise.

“This is hardly surprising; the lending landscape has been particularly difficult to navigate in the last year.

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“Against this backdrop, the optionality of bridging products and flexibility of specialist lenders have proven invaluable to both brokers and borrowers alike in recent months.

“However, in the midst of improving economic indicators, it’s important to remember that while bridging applications are on the rise, lenders cannot afford to become complacent.

“The improving economic climate brings its own set of challenges and, as activity levels pick up again, lenders have to remain committed to providing certainty, flexibility and speed to investors looking to bricks and mortar as the market recovers.”

James Bloom, director at Alternative Bridging, added: “The last year has seen a steady increase in applications as the alternative market steps in where traditional lenders leave voids.

“Loan books will be increasing due to the upturn in enquiries and, at times, due to a softer sales market leading to loans taking longer to repay, although recently our redemptions have been stronger.

“The conversion rates may generally be lower due to a nervousness in the market leading to clients changing their mind or losing out on a purchase.

“We have seen a consistent strong conversion rate as the quality of the applications improve — it is even more important in a challenging market to take on the right calibre of deals, which can sometimes lead to higher decline rates in the market.

“We constantly educate our brokers as to our appetite.

"Which leads to more suitable deals being put to us and therefore lower decline and fall out rates."

Jonathan Samuels, CEO at Octane Capital, added: “Confidence is coming back into the market as the Bank of England has kept rates level at two consecutive monetary policy committee meetings — on top of that, property prices have held up better than a lot of people expected, Rightmove said today that property [average asking price] is only 3% down on the year compared to a double digit predicted drop.

“We are seeing this play out in increased activity from bridging finance borrowers as they look to take advantage of market discounts while they are still there.

"Sentiment is still on balance, negative, but improving; lots of investors know that if sentiment actually turns positive then those discounts will disappear remarkably quickly.

“The fact that conversion rates in Q3 are not at all time highs is unsurprising.

"I think this is more a matter of timing than anything else; August is right in the middle of Q3 which can elongate the time to complete certain loans.”