The UK’s bridging loan market is booming, and nowhere is this more visible than in London.
With a projected market value of £12.2 billion in 2025, this fast-growing corner of the lending market is stepping into the mainstream as developers, investors and business owners look for speed and flexibility over traditional mortgages.
According to West One Loans, completions hit £2.3 billion in Q4 of 2024 alone, a record-breaking figure that shows the appetite for short-term lending across the country.
That surge pushed the total bridging loan book to £10.3 billion by year-end, marking the first time the industry has passed that milestone. London, as the centre of property activity in the UK, accounts for a significant slice of this growth.
Why is bridging finance booming?
The short answer is: speed, flexibility, and versatility. West One reports that bridging loans now average 38 days to complete, a huge advantage in a market where quick turnarounds can make or break deals.
In London’s hyper-competitive property market, this matters. Whether it’s a developer needing capital to refurbish a flat in Clapham before flipping it, or a landlord trying to close on an unmortgageable property in Hackney, bridging finance allows borrowers to seize opportunities quickly, often when high-street banks won’t play ball.
Unlike conventional mortgages, bridging lenders are more likely to focus on asset value and exit strategy than credit scores.
Borrowers can also access up to 75% LTV, which is increasingly attractive in a city where property values are high but equity can be hard to liquidate quickly.
The London effect
London remains a driving force behind this sector’s expansion. The capital saw more than 100,000 property transactions in 2024, and with Savills forecasting a rise to 1.14 million transactions UK-wide in 2025, much of the activity will centre around the capital.
This activity is already being felt. Rightmove expects property prices to rise by 4-5% this year, while falling interest rates have reignited buyer interest, especially in areas like Camden, Walthamstow and Battersea, where competition is high and property turnover is fast.
This makes bridging loans especially useful in London, where the need to move fast is not just a strategy, it’s a necessity.
Institutional backing signals sector maturity
The bridging space is no longer a niche corner of alternative lending. Major institutional investors are getting involved, most notably with MT Finance securing a £275 million investment from Centerbridge Partners in October 2024. This follows existing partnerships with giants like JP Morgan and PIMCO, a strong endorsement of the sector’s credibility.
Second charge lending on the rise
Another trend adding momentum is second charge lending, which allows homeowners and investors to release equity without remortgaging.
According to Somo, demand for second charge bridging is expected to rise as Londoners seek creative ways to unlock property value, especially in the face of lingering affordability issues.
Somo’s CEO Louis Alexander reports that the platform has already facilitated over £350 million in bridging loans, with a track record of zero investor losses over the past decade, a sign of maturing risk practices in the sector.
He also expects to see weaker lenders phased out over the next 12 months, leading to greater confidence and stronger risk controls across the industry.
From niche to necessity
Where bridging loans were once considered a last resort, they are now a mainstream financial product used by savvy property professionals. Their appeal isn’t limited to large developers either, landlords, business owners, and even homeowners are turning to bridging finance to solve short-term funding challenges.
In a volatile market, bridging finance offers a quick and flexible option, especially when there’s a clear exit strategy such as resale or refinancing. With the option to customise repayment terms and often no early repayment charges, borrowers have more control than with traditional lenders.
As West One’s co-head of short-term finance Thomas Cantor puts it:
“It’s fair to say that bridging has very much become a mainstream product and a vital tool in a developer’s armoury.”
What this means for London in 2025
All signs point to continued growth. The projected £12.2 billion market size reflects increased borrower confidence, investor appetite, and institutional support. London will remain at the heart of this, not just because of its volume of transactions, but because the city’s property ecosystem demands the speed and flexibility that bridging finance uniquely provides.
With more lenders offering competitive terms, more investors seeking stable yields, and more professionals looking for fast funding, London’s bridging finance scene is only set to grow stronger.
Bridging loans have moved from the margins to the mainstream, and in 2025, London is where the action is.
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