The UK bridging and development finance market slowed in the first quarter of 2026, with completions down 28% to £1.8bn and orders down 15% to £9.9bn, according to the latest figures from the Bridging and Development Lenders Association (BDLA).
Lenders’ loan books stood at £11.5bn at the end of March. The average loan-to-value ratio also decreased from 58.64% in the fourth quarter of 2025 to 56.64% in the first quarter of 2026, as lenders continued to take a cautious approach to risks.
BDLA said the slowdown comes after a long period of growth and comes against a backdrop of… Economic and geopolitical uncertainty. However, it said the sector remains supported by strong demand, disciplined underwriting and continued confidence from lenders and investors.
Development lending reached £276.5 million during the quarter, down 34% from £420.3 million in the fourth quarter of 2025. Secondary lending fell 10% to £131.3 million from £145.8 million in the previous quarter.
The BDLA’s quarterly survey is compiled by independent auditors using data provided by lender members. It provides one of the most detailed snapshots of activity in the UK bridge and development finance market.
Adam Tyler, CEO of 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 broader economic and global factors, which have inevitably impacted confidence and activity across the property and mortgage sectors.
“However, the bridge and development finance sector remains in good shape, with strong fundamentals, experienced lenders and a clear role in supporting borrowers who require flexible and time-sensitive financing solutions.
“Across the wider mortgage market, the past 12 months have been challenging. Brokers, lenders and borrowers have all had to navigate uncertainty around prices, property values, transaction volumes and the wider economic outlook. In this context, some slowdown in activity was expected.
“What gives us confidence is the continued professionalism of the sector. Lenders are disciplined in their underwriting, capital remains available to high-quality lending platforms, and there is an increased focus on governance, transparency and sustainable growth.
“The market is also becoming more mature. This means that growth will not always be linear, but the long-term trend of travel remains positive. Bridging and development finance is now an established and essential part of the UK real estate 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.”
