£242.2m of these loans were categorised as bridging. 

There was a 22% rise in bridging development loans in the same period, compared with the previous quarter, which highlighted the growing trend of property developers relying on short-term lending solutions.

The development lending figures excluded ‘light refurbishment’, such as the addition or renovation of bathrooms, kitchens and conservatories, as these generally do not require planning permission or extensive structural changes.

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Benson Hersch, CEO at the ASTL (pictured above), said that the role of small and medium building firms was seen as crucial in helping to solve the housing crisis, but access to finance still remained their toughest barrier to overcome.

“While SME building firms continue to be locked out of mainstream channels, they will increasingly rely on different sources of finance, such as short-term funding solutions. 

“These alternative forms of finance are providing a solution and allowing small developers to play their part in housing delivery.”