Year in review: a steady if uneven rise for bridging – Cawood

The charged atmosphere at all of the broker events I’ve been to over the last 12 months spoke volumes, with that spirit converting into the lending growth predicted by year end.

The bridging market this year has been shaped by steady demand, uneven momentum, and a noticeable shift in short-term finance use across the property sector. Bridging & Development Lenders Association (BDLA) figures throughout the year helped outline these trends, demonstrating strong activity at the start of the year, with Q1 completions at £2.8bn and applications of over £18bn. A softer second quarter followed, reflecting wider hesitation in the sales and investment markets, but by Q3, the market had regained ground, with completions up by almost 10% on the previous quarter and the collective industry loan book hitting a record £13.7bn.

Planning delays, slower sales, and fluctuating sentiment have created an uneven landscape, but the need for fast, dependable funding is constant. Bridging has continued to move into the space left by more measured mainstream lending, giving investors and developers the ability to act quickly and realise their property ambitions.

Better business conditions

Several drivers supported this growth. More competitive product rates across the industry encouraged landlords to revisit refurbishment plans or reshape portfolios previously put on hold. Lenders have also invested in systems, digital tools, and service teams, reducing completion times and offering brokers more confidence on complex deals. These improvements have been particularly useful with deals where timing is critical, like light development, conversions, and planned exits into longer-term buy to let (BTL) or commercial funding.

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Plenty of cases we saw throughout the year reflected these shifts. For example, a semi-commercial refinance in the Midlands required speed to allow the client to begin essential works, and by using automated valuation and title insurance, we were able to keep the client’s timeline intact. Another case involved a residential conversion in the South East where planning delays threatened the exit route. We worked closely with the broker and set a phased plan based on realistic refinance timings to support the client through a more complex journey.

Looking ahead, in time, the environment for bridging could shift positively again. The government’s Home Buying and Selling Consultation, ending in December, signals the beginning of a more digital and structured conveyancing process. If adopted, these changes could shorten completion times and introduce more certainty to the early stages of a transaction.

This type of shift will place greater emphasis on lenders who can make quick, informed decisions and maintain strong communication with brokers. Rather than reducing the need for bridging, it is likely to support greater use of short-term finance as buyers, investors, and developers move at a faster pace.

Planned change

Planning reform also has the potential to influence demand. Amendments debated in the Lords in November are expected to become law in 2026. If the planned changes do improve clarity around permissions and development rights, confidence is likely to rise among both investors and developers. Combined with expected bank base rate cuts and a general push toward a more digitised housing market, 2026 could bring an even more active, forward-looking year for the bridging sector.

As the market shifts towards a leaner, digitally driven era of property transactions, the value of strong, consumer-centric relationships and efficient lending will only grow. These strengths will shape the sector in the year ahead and help set a higher standard for how bridging deals are handled. This is certainly an area we will be focusing on in 2026, but in the meantime, from everyone at StreamBank, let me wish you a very merry Christmas and a happy new year.