Bridging, development, and commercial finance sectors all contribute to increased lending activity
The UK’s specialist finance market recorded notable growth in the first quarter of 2025, with bridging, development and commercial finance sectors all seeing increased traction, according to the latest market update from digital marketplace Brickflow.
Drawing on insights from more than 100 lenders and data from over 13,000 live loan products, the report tracked key lending patterns and pricing changes based on 157,000 data points.
Loan searches climbed to £21 billion between January and March 2025, marking a 10% increase compared to the 2024 quarterly average. The figures suggest stronger confidence among borrowers and heightened broker activity in sourcing finance options.
Meanwhile, the number of decisions-in-principle (DIPs) issued jumped by 83% over the same period. This increase has been linked to greater engagement from lenders and quicker turnaround times, reflecting a shift towards digital platforms as central channels for deal origination.
The Brickflow report also found that lenders continued to reduce minimum rates across various loan types. However, the spread between the lowest and highest-priced deals widened in Q1, pointing to a fragmented market. This trend underscores the importance of detailed loan comparisons and broker guidance.
Bridging finance remains resilient, with lenders prioritising speed and deal structuring over headline rates. Although more products are available, pricing still depends heavily on borrower credentials and asset specifics. According to latest figures from the Bridging & Development Lenders Association (BDLA), bridging finance has surpassed £10 billion in total loan book value for the first time in Q4 2024.
Development finance saw higher search volumes and faster DIP processing, suggesting that more developers are moving projects forward amid expectations of stabilising interest rates. Mid-sized schemes in particular have attracted lender interest, with the average development finance search at £5.7 million during Q1.
Commercial lending activity grew gradually, supported by slightly more attractive pricing. However, product structures remain complex, and lenders are proceeding with caution. The report attributes the steady uptick in demand to investors seeking refinancing or repositioning strategies. According to data analysis by real estate investment platform easyMoney, commercial property transactions have gained ground in the UK market as rising mortgage rates put pressure on residential lending.
“This quarter’s data tells the story of a market that’s active, responsive, and increasingly dynamic,” said Sabinder Robinson-Sandhu, head of growth at Brickflow. “While there are signs of growing lender competition, borrowers must still navigate a fragmented landscape. Data-led platforms and broker expertise are essential to unlocking the best opportunities.”
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