Specialist lender says short-term finance is taking a larger role as market uncertainty affects property deals
Bridging finance is playing an increasingly essential role in the UK property market as traditional lending routes struggle to accommodate growing transaction complexity, according to analysis by specialist lender Octane Capital.
The lender said estimated bridging completions reached £10.03 billion in 2025, compared with £7.34 billion in 2024 and £5.76 billion in 2023. The figures, the company noted, point to a larger role for specialist finance in the mortgage and property markets.
Octane Capital reviewed bridging completion data over the past three years, including quarterly trends, to assess how demand for short-term finance has changed in response to market conditions.
It said demand had been supported by a more difficult operating environment for borrowers and intermediaries. Inflation, higher borrowing costs, uncertainty over the Bank of England base rate and geopolitical risks have made transactions harder to complete.
According to the lender, these pressures had led to longer transaction times, less certain completion dates and a greater need for borrowers to adjust plans during the process.
Bridging loans are being used for a wider range of purposes, including chain breaks, time-sensitive purchases, refinancing and refurbishment funding. The lender said this reflected the need for faster funding where mainstream lending may not be able to meet changing requirements.
“What we’re seeing isn’t just growth in the bridging sector, it’s a reflection of how the wider property market has evolved,” said Jonathan Samuels (pictured right), chief executive of Octane Capital.
“Transactions are taking longer, conditions are shifting more frequently, and borrowers are having to navigate a far more complex environment than they were even a few years ago. Bridging finance has stepped up and into that gap, providing the speed and flexibility required to keep deals moving when more traditional routes can’t keep pace.
“While there will always be short-term fluctuations, particularly in response to wider economic or geopolitical events, the role of bridging within the market has become far more fundamental. It’s no longer simply a niche or alternative option, it’s increasingly becoming a core part of how property transactions are structured and delivered in today’s market.”
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