Detail
Asset types – by £value of lending
Asset type
H2 2025
H1 2026
Residential Office Healthcare PBSA Retail Hotels Industrial Land Marine
£127m £69m £29m £21m £16m
£133m £49.7m £1.2m £33.8m £12m £0.8m £9.3m £4.1m £0.6m
£8m £3m £3m £2m
Residential remains the dominant category at £133m, though a significant proportion of that is investment rather than development: completed schemes retained and refinanced into buy-to-let and portfolio facilities rather than sold. Office stepped down, from £69m to £49.7m and healthcare fell sharply, from £29m to £1.2m. PBSA rose from £21m to £33.8m on the back of two prime schemes – consistent with our expectation that delayed larger transactions would complete by mid-year, and with a sector in which lender appetite is now concentrated almost entirely on location and covenant quality.
Loan types
Loan type
% of deals
Total value
Val %
Bridging Residential mortgage Buy-to-Let Development Commercial VAT Marine Self-build
33.3% 21.0% 17.1% 14.3% 10.5%
£78.3m £10.6m £39.4m £56.5m £32.2m £1.2m £0.6m £25.8m
32.0% 4.3% 16.1% 23.1% 13.2% 0.5% 0.2% 10.6%
1.9% 1.0% 1.0%
Bridging remains the largest category on both measures, at a third of transactions by volume (33.3%) and by value (32.0%). The divergence between the two columns is instructive. Residential mortgages account for 21.0% of transactions but only 4.3% of value, reflecting a high number of smaller facilities, while development represents 14.3% of deals and 23.1% of value; a single large self-build facility accounts for 10.6% of value from one transaction. Underlying the bridging figure is a change in how the product is being used – increasingly as medium-term money secured against an operating asset, rather than as a sale-dependent exit.
Finance type – by % of deals
Metric
H2 2025
H1 2026
Senior Mezzanine and equity
98% 2%
94% 6%
Loan purpose – by % of deals
Metric
H2 2025
H1 2026
Refinance Purchase Equity release
46% 40% 14%
58% 28% 14%
Refinancing rose from 46% to 58% of transactions while purchases fell from 40% to 28%, with equity release unchanged at 14%. The shift reflects two things: borrowers holding assets rather than selling into a subdued sales market, and balance sheet lenders competing hard enough on leverage and margin to release refinancing that had been sitting still. We expect the balance to move back toward acquisition over the second half, as discounted stock reaches the market and vendors – particularly funds reaching the end of their investment cycles – accept current pricing.
6 January - June 2026 Real Estate Funding Report
Made with FlippingBook - professional solution for displaying marketing and sales documents online