Bridging growth stabilises at 25pc

This marks a slowdown from annual growth to June 2013 which stood at 56.3%, yet at the time growth rates were more volatile, regularly changing by over 10% between every recorded period.

Gross bridging lending stood at £2.23bn to September 1, with loan volumes increasing by 23.2% and loan sizes increasing by 15.9% to stand at £497,000.

Duncan Kreeger, director of West One Loans, said: “Bridging lending continues to grow, and reaches a fresh record practically every month.

“But bridging is also securing a new, more reliable mode of expansion to fit a new, more professional and competitive industry.

“The latest record has been achieved in line with that new mood.

“Industry growth picked up again over the summer after a slightly slower period in the spring and since then bridging lenders have continued that pattern of solid progress.

“Looking ahead to the end of the year and into 2015 this reliable expansion looks set to continue.”

On a bi-monthly basis, the two-month period ending 1 September saw £452m in gross lending, up 21% from £374m in the same two months in 2013.

Typical bridging interest rates have reached 1.17%, down from 1.25% recorded in the previous 12 monthly period.

Average loan to value ratios have increased to a 12-month average of 47.3%, up from 46.5% recorded over the previous 12 months to 1 July 2013.

Duncan Kreeger added: “Bridging loans are still covered twice over by the value of their security, and that doesn’t look set to change dramatically any time soon.

“With renewed prosperity and optimism, lenders must also temper the mood of expansion with caution.

“But today’s most successful bridging lenders cut their teeth in the recession and know how to manage risk.

“All the evidence suggests that bridging lenders are making a conscious decision to back up their support for dynamic projects with solid security.”