Survey finds cautious optimism among lenders and brokers, with macroeconomic uncertainty rising sharply as the sector's dominant concern
The UK bridging finance market is expected to see little year-on-year growth over the next 12 months, with institutional capital remaining available but increasingly selective, according to the latest Interpath and BDLA Bridging Market Survey.
The survey drew on responses from 46 industry participants, with more than half (59%) either brokering or lending within the sector. Just over half of respondents (52%) reported increased origination volumes over the past year, while 35% recorded no significant change — pointing to a market performing steadily but with fewer signs of acceleration than in prior years.
The high-profile collapse of Market Financial Solutions, as well as of Century Capital, has brought governance, transparency and operational standards into sharper focus. Both funders and originators expect higher reporting requirements going forward, reflecting greater scrutiny from capital providers.
"Short-term property finance continues to stand out as a highly attractive niche within specialty finance, underpinned by strong security, compelling yields and short-duration assets," said Stuart Mogg (pictured right), head of FS debt and capital advisory at Interpath.
"While the sector has benefitted from significant liquidity in recent years, intensified competition, high profile platform failures and macro uncertainty have led to a more selective and bifurcated funding environment. Some institutions are retrenching or focusing on larger, well capitalised platforms, while others are seizing the opportunity to access assets that were previously highly contested.
"Despite a moderation in appetite, funders remain committed to the sector, and we continue to see it as a key area of focus for capital deployment - albeit with originators needing to work harder to secure it. In this environment, those lenders that can demonstrate robust governance, scalable platforms with a proven track record, and a diversified product offering will be best placed to attract funding."
These dynamics are expected to accelerate consolidation, with larger, well-capitalised lenders seen as better positioned to meet rising expectations while smaller operators face growing competitive pressure.
Macroeconomic concerns are now the market's dominant challenge. The proportion of respondents identifying macroeconomic uncertainty as their primary concern rose to 65% in 2026, up sharply from 39% in 2025, with a further 15% ranking it second. The shift suggests market participants are increasingly focused on external risks affecting demand, pricing and deal viability.
Legal processes and slow borrower response times were again identified as the main causes of transaction delays. Despite these challenges, sentiment towards technology remains broadly positive, with respondents expressing confidence that artificial intelligence and automation will play a growing role in reducing inefficiencies and improving turnaround times.
While overall demand for bridging finance is expected to remain broadly stable, appetite for development finance continues to strengthen. Around half of respondents indicated they are increasing exposure on a selective basis.
"This report comes at an important point in the continued evolution of the bridging and development finance sector," said Adam Tyler (pictured right), chief executive of the Bridging & Development Lenders Association.
"When we first started measuring the bridging market in 2005, the total loan book stood at around £300 million. Today, the loan book of BDLA members alone stands at £11.5 billion, demonstrating just how far the sector has come.
"Bridging and development finance has evolved from what was once viewed as a niche product into an essential component of the UK property market, supporting investors, developers, brokers and borrowers with flexible funding at critical moments. However, growth of this scale also brings responsibility to all those involved. As the market expands and attracts greater attention from regulators, policymakers, investors and customers, maintaining high standards and providing greater awareness has become more important than ever."
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