The UK bridging and development finance market entered 2026 in a "more measured phase" due to continued economic and geopolitical uncertainty, following a period of sustained growth, the Bridging & Development Lenders Association (BDLA) has stated.

The association’s quarterly lending data for Q1 found that there was a moderation in activity across applications, completions and loan books compared to Q4 2025.

In the three months to 31 March, completions totalled £1.8bn, which is a reduction from £2.5bn in Q4 2025. Applications also dropped from £11.7bn to £9.9bn quarter-on-quarter, with total lender loan books standing at £11.5bn at the end of this period.

Development LTV ratios dropped from 58.6% to 56.6% in Q1, while development lending fell from £420.3m to £276.5m quarter-on-quarter.

However, the BDLA stated that this 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".

CEO at the BDLA, Adam Tyler, said that it is “not surprising” to see the market move to a more measured phase following a period of sustained growth.

He concluded: "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."

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