“From a lender’s perspective, the bridging market has remained resilient despite the ongoing uncertainty around interest rates and the wider economic backdrop,” Gibson said. “We’ve seen continued demand from borrowers who need speed and flexibility, particularly where traditional lenders are unable to move quickly enough or where cases fall outside standard criteria.”
Caution takes hold
Gibson acknowledged the slowdown in activity but placed it in the context of wider economic conditions that have affected sentiment across the sector. Borrowers, he said, are weighing their options more carefully than they were 12 months ago.
“We have indeed noticed the slowdown reported by the Bridging & Development Lenders Association in the first quarter of 2026,” he said. “The market has been adjusting, with uncertainty around interest rates and economic shifts prompting borrowers to act more cautiously and prioritise strong exit strategies.”
That shift in borrower behaviour is one of the defining features of the current environment. Where speed was once the dominant concern for those turning to bridging finance, viability of the exit route has moved to the forefront of both borrower thinking and lender underwriting. BDLA data published earlier this month showed the Q1 figures marked a significant shift from the same period in 2025, when completions stood at £2.8 billion.
Adam Tyler, chief executive of the BDLA, said the moderation was not unexpected. The association described the sector as remaining well positioned, with disciplined underwriting and strong capital availability continuing to support the market’s foundations.