UK bridging completions fell to £1.8bn in Q1 as lenders maintain disciplined underwriting amid wider economic uncertainty
The UK bridging and development finance market entered a more measured phase in the first quarter of 2026, with completions, applications and loan books all declining from the levels recorded at the end of last year, according to new data from the Bridging & Development Lenders Association (BDLA).
Figures from the BDLA's quarterly lending data survey – compiled by independent auditors using submissions from lender members – show completions totalled £1.8 billion in the three months to 31 March 2026, down from £2.5 billion in Q4 2025. Applications fell to £9.9 billion from £11.7 billion in the previous quarter, while total lender loan books stood at £11.5 billion, compared with £13.4 billion at the end of 2025.
Average loan-to-value (LTV) ratios also eased, falling to 56.64% from 58.64% in Q4 2025, reflecting a continued focus on responsible lending and measured risk appetite.
Development lending reached £276.5 million during Q1, down from £420.3 million in the previous quarter, while second charge lending stood at £131.3 million, compared with £145.8 million in Q4 2025.
A sector in transition
The BDLA said the Q1 figures should be read against the backdrop of the market's rapid expansion over recent years, a more cautious property finance environment, and ongoing economic and geopolitical uncertainty, rather than as a signal of structural weakness.
Adam Tyler, chief executive of the BDLA, said the softening was not unexpected given wider conditions.
"After a sustained period of strong growth, it is not surprising to see the market move into a more measured phase," Tyler said. "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."
He added that brokers, lenders and borrowers all had to navigate uncertainty around rates, property values, transaction volumes and the broader economic outlook over the past 12 months.
Fundamentals remain intact
Despite the quarterly dip, Tyler said the sector's underlying position remained strong, pointing to disciplined underwriting, continued capital availability and a growing emphasis on governance and transparency.
"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," he said.
Capital providers, Tyler added, were placing greater weight on proven track records and sustainable platforms – a sign of the market's growing maturity.
"The market is also becoming more mature," he said. "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 said it would continue to support the standards, data and sector representation needed to ensure responsible growth. The Q1 2026 data marks a notable shift from the same period in 2025, when completions stood at £2.8 billion and the total loan book reached £12.96 billion, underscoring the scale of the market's expansion over the past year before this latest moderation.
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