Quarterly lending data from the Bridging & Development Lenders Association (BDLA) covering Q1 2026 showed an easing in activity across applications, completions and loan books when compared to the preceding quarter.
In Q1, the value of completions was £1.8bn, down from £2.5bn in the last quarter of 2025. The value of applications stood at £9.9bn, down from £11.7bn in Q4 2025, while loan books totalled £11.5bn.
The BDLA said the figures should be considered in the context of the bridging market experiencing rapid growth over the last few years. It said despite rising caution around property finance, the sector was supported by strong confidence, disciplined underwriting and a demand for flexible short-term funding.
It said the market was still well-positioned and lenders continued to be prudent towards risk, while capital providers placed greater importance on governance, transparency and proven track records.
Average bridging loan-to-value (LTV) ratios fell from 58.64% in Q4 2025 to 56.64% in Q1 this year, which reflected the measured risk appetite and responsible lending.
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The value of development lending came to £276.5m in Q1, down from £420.3m in the previous quarter, while second charge lending fell from £145.8m to £131.3m over the same period.
Bridging sector is maturing and entering a measured phase
Adam Tyler, CEO of the BDLA, said after a sustained period of growth, it was not surprising to see the market “move into a more measured phase”.
He said Q1 was shaped by the events across the wider economy and global facts, which influenced confidence and activity.
However, Tyler said 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.”
He said the professionalism of the sector gave the BDLA confidence, as lenders had been disciplined in the underwriting, capital remained available and there was more focus on governance, transparency and sustainable growth.
Tyler added: “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.”
