"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."
- Stuart Mogg - Interpath
The latest Interpath & BDLA UK Bridging Market Survey 2026 has found that market momentum in the UK bridging finance sector is expected to stabilise over the next 12 months, with lenders and brokers anticipating little year-on-year growth as institutional capital remains available but increasingly selective.
Nevertheless, increased governance and a wave of consolidation look set to reshape the market, due in part to recent events that have impacted the sector.
The Interpath & BDLA Bridging Market Survey monitors trends in the UK bridging finance market, collating insights from lenders, brokers and other specialists.
In this, the third edition of the survey, Interpath collected feedback from 46 industry participants, with over half of the respondents (59%) either operating as brokers or lending within the sector.
The survey found that sentiment amongst lenders and brokers remains cautiously positive despite softer momentum over the past year.
Just over half of respondents (52%) reported increased origination volumes, while a further 35% noted no significant change in growth activity, pointing to a market that continues to perform steadily but with fewer signs of acceleration than in previous years.
The recent high-profile collapses of institutions including Century Capital and MFS have brought structural, operational and governance considerations into sharper focus for many of the survey’s respondents.
Both funders and originators expect higher standards of governance, transparency and reporting to be required moving forward, reflecting increased scrutiny from capital providers.
In turn, these dynamics are expected to accelerate consolidation across the sector: larger, well-capitalised lenders are seen as better placed to meet these rising expectations, while smaller players may face increasing challenges in competing effectively.
Stuart Mogg, head of FS Debt and capital advisory at Interpath, said: "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.
"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."
Nick Parkhouse, global head of financial services at Interpath, added: "A clear 'flight to quality' is emerging, with capital concentrating around established, proven platforms. This is expected to drive consolidation as investors prioritise resilience, track record and operational robustness in an environment where confidence has been tested by recent market failures and where macro-economic uncertainty has risen sharply compared with last year."
