Bridging market adjusts after strong growth cycle as sector confidence remains
12 June 2026
Latest BDLA data points to more measured activity in Q1, with lenders maintaining disciplined underwriting
The UK bridging and development finance market entered 2026 in a more measured phase, following a sustained period of growth and amid continued economic and geopolitical uncertainty, according to the latest quarterly lending data from the Bridging & Development Lenders Association (BDLA).
The Q1 2026 figures show a moderation in activity across applications, completions and loan books compared with the final quarter of 2025. However, the BDLA said the data should be viewed in the context of the market’s rapid expansion over recent years, a more cautious wider property finance environment, and a sector that continues to benefit from strong underlying confidence, disciplined underwriting and established demand for flexible short-term funding.
While activity softened during the first quarter, the BDLA said the market remains fundamentally well positioned, with lenders continuing to take a prudent approach to risk and capital providers placing greater emphasis on governance, transparency and proven track records.
In the three months to 31 March 2026, completions totalled £1.8 billion, down from £2.5 billion in Q4 2025. Applications reached £9.9 billion, compared with £11.7 billion in the previous quarter, while total lender loan books stood at £11.5 billion.
Average loan-to-value ratios also reduced to 56.64%, from 58.64% in the previous quarter, reflecting a continued focus on responsible lending and measured risk appetite.
Development lending totalled £276.5 million during Q1, compared with £420.3 million in Q4 2025, while second charge lending stood at £131.3 million, down from £145.8 million in the previous quarter.
The BDLA’s quarterly data survey is compiled by independent auditors using figures submitted by lender members and provides one of the most comprehensive snapshots of activity within the UK bridging and development lending sector.
Adam Tyler, CEO of the BDLA, commented:
“After a sustained period of strong growth, it is not surprising to see the market move into a more measured phase. The first quarter of 2026 has been shaped by a number of wider economic and global factors, and these have inevitably influenced confidence and activity across the property and mortgage sectors.
“However, the bridging and development finance sector remains in good shape, with strong foundations, experienced lenders and a clear role to play in supporting borrowers who need flexible, time-sensitive funding solutions.
“Across the wider mortgage market, the last 12 months have been challenging. Brokers, lenders and borrowers have all had to navigate uncertainty around rates, property values, transaction volumes and the broader economic outlook. In that context, some cooling in activity was expected.
“What gives us confidence is the continued professionalism of the sector. Lenders are being disciplined in their underwriting, capital remains available for high-quality lending platforms, and there’s a growing focus on governance, transparency and sustainable growth.
“The market is also becoming more mature. That means growth will not always be linear, but the long-term direction of travel remains positive. Bridging and development finance is now an established and essential part of the UK property finance landscape, the BDLA will continue to support the standards, data and representation needed to ensure the sector grows responsibly, and BDLA membership continues to provide a badge of quality for others to follow.”
