"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."
- Adam Tyler - BDLA
The latest quarterly lending data from the Bridging & Development Lenders Association (BDLA) has found that the UK bridging and development finance market entered 2026 in a more measured phase, following a sustained period of growth and amid continued economic and geopolitical uncertainty.
The Q1 2026 figures show a moderation in activity across applications, completions and loan books compared with the final quarter of 2025.
In the three months to 31st March 2026, completions totalled £1.8 billion, down from £2.5 billion in Q4 2025. Applications reached £9.9 billion, compared with £11.7 billion in the previous quarter, while total lender loan books stood at £11.5 billion.
Average loan-to-value ratios also reduced to 56.64%, down from 58.64% in the previous quarter, while development lending totalled £276.5 million during Q1, compared with £420.3 million in Q4 2025, and second charge lending stood at £131.3 million, down from £145.8 million in the previous quarter.
The BDLA said the data should be viewed in the context of the market’s rapid expansion over recent years, a more cautious wider property finance environment, and a sector that continues to benefit from strong underlying confidence, disciplined underwriting and established demand for flexible short-term funding.
While activity softened during the first quarter, the BDLA said the market remains fundamentally well-positioned, with lenders continuing to take a prudent approach to risk and capital providers placing greater emphasis on governance, transparency, and proven track records.
Adam Tyler, CEO of the BDLA, said: "After a sustained period of strong growth, it is not surprising to see the market move into a more measured phase. 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.
"However, 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.
"Across the wider mortgage market, the last 12 months have been challenging. Brokers, lenders and borrowers have all had to navigate uncertainty around rates, property values, transaction volumes and the broader economic outlook. In that context, some cooling in activity was expected.
"What gives us confidence is the continued professionalism of the sector. Lenders are being disciplined in their underwriting, capital remains available for high-quality lending platforms, and there’s a growing focus on governance, transparency and sustainable growth.
"The market is also becoming more mature. 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 will continue to support the standards, data and representation needed to ensure the sector grows responsibly, and BDLA membership continues to provide a badge of quality for others to follow."
