< p>The rate of bridging loan growth over the past year has slowed significantly, according to data released by the Association of Short Term Lenders (ASTL).

Its latest quarterly figures reveal that the amount of loans written in September 2015 saw an increase of just 2.7%, compared to an increase of 12.3% in September last year.

The ASTL said the total loan book for the quarter ending September 2015 stood at £2.41bn, an increase of just 0.8% over the quarter ending in June.

This compares to September 2014 where the loan book total was £1.98bn, which was a 15.3% rise over the previous quarter.

On a more positive note, the number of applications during the last quarter remained consistent with a 17.1% quarter-on-quarter increase compared to an 11.6% rise last year.

Benson Hersch, Chief Executive of the ASTL, said the figures suggest that while demand for bridging is strong, lenders are not completing on the loans. 

“Part of the reason could be that, with more new lenders entering the market and increased availability of funds to existing lenders, brokers are shopping around, so that, in fact, there aren’t more cases, but each case is being offered to several lenders,” said Benson.

“Although there has been a slowdown in the rate of completions, the demand for bridging finance is up and competition in the bridging sector is strong, however I do not expect to see runaway growth, but a sensible and steady expansion of the sector.”