Our journey in 2024’s bridging market
Bridging 2024: A Year of Growth and Transformation for London Credit
As we close the chapter on 2024, the UK bridging finance sector has demonstrated remarkable resilience, navigating a complex mix of political, economic, and market challenges. While the year has been far from straightforward, it has also been a period of growth and evolution, both for the wider market and for the team at London Credit.
Market dynamics and growth in bridging finance
Recent data from the Bridging & Development Lenders Association (BDLA) reflects the ongoing growth of the sector in 2024. Bridging completions hit a record high of £1.79 billion in Q3, reflecting a 2.6% increase from the previous quarter and a significant 25.5% growth compared to the same period in the previous year. Bridging finance has solidified its position as a key solution for property investors seeking fast and flexible funding. The market saw strong demand for products supporting auction purchases, refurbishment projects, and portfolio restructuring, with an increasing number of investors relying on bridging as a vital resource.
While the general election and subsequent Autumn Budget introduced some uncertainty, the UK bridging market displayed its characteristic adaptability. The decision to increase Capital Gains Tax (CGT) rates for non-residential property disposals posed challenges for commercial investors, but the stability of CGT rates for residential property offered reassurance. The rise in Stamp Duty Land Tax (SDLT) on additional dwellings added a layer of cost for certain transactions but was largely absorbed without significant market disruption. Meanwhile, the stabilisation of interest rates in the latter half of the year eased borrowing costs, providing a welcome boost to investor confidence and creating renewed opportunities for bridging finance to support auction purchases, refurbishment projects, and property acquisitions.
Further political developments, such as the government’s focus on reforming planning laws, have been a positive signal for property investors. The anticipated changes aim to simplify change-of-use applications and unlock new opportunities for refurbishment and conversion projects—key strategies for boosting yields.
These reforms hold significant value for bridging lenders, opening up new opportunities for investors in need of swift and adaptable financing solutions.
London Credit’s milestones in 2024
2024 was a transformative year for London Credit, marked by strategic advancements in our product range, service delivery, and team growth.
We increased our maximum loan-to-value (LTV) ratio on residential loans to 75%, providing clients with greater borrowing power to pursue larger and more ambitious projects. This change applies to loans where borrowers have access to additional assets. By expanding this offering, we’ve empowered investors and developers to unlock opportunities that may have previously been out of reach. Additionally, we have strengthened our team to support these proposition changes, ensuring brokers receive an even more personal and responsive service.
One of the standout achievements of the year was the phased pilot launch of our development finance product. This carefully structured initiative provided funding on a small number of schemes, allowing us to refine our lending and service proposition to ensure it meets the needs of brokers and their clients before a controlled launch to the entire broker market.
Looking ahead
Our accomplishments in 2024 have laid the groundwork for continued growth and innovation. With an expanded product range, a stronger team, and a streamlined service experience, London Credit is well-positioned to support brokers and clients with new opportunities in 2025. Whether through bridging loans or our development finance offering, which will be rolled out during the year, our focus remains on delivering solutions that drive the utmost success in the property market.
Marios Theophanous, Credit Manager at London Credit
