Insight Evolving borrower demand is reshaping UK bridging
By Duncan Kreeger, CEO and founder, TAB
The bridging market has begun to cool after several years of rapid expansion. Bridging & Development Lenders Association data for Q1 2026 shows completions of £1.8 billion, down from £2.5 billion in the final quarter of 2025, and average loan-to-values have eased below 57%. That reads to us as a market finding a more sustainable level rather than one in retreat. The more meaningful change is in what borrowers are using bridging for. Demand for heavy refurbishment products has dropped markedly and fewer loans are being written to repair broken chains. Increasingly, bridging is being used to secure time-sensitive opportunities. That shift has made execution certainty the primary differentiator. Introducers are looking for lenders who will interrogate a security properly, test the commercial logic, confirm a realistic exit and then decide quickly once due diligence is complete. Speed on its own is no longer the point; speed with conviction behind it is. At the same time, investors are moving beyond straightforward residential opportunities in search of stronger
yields, and those transactions frequently fall outside standard credit policy. They call for underwriters who can assess the full picture – asset specifics, income potential and exit viability – rather than working down a checklist. Brokers have responded by bringing us a steadier flow of complex cases that need commercial judgement, and that has supported our origination throughout the first half. TAB has grown into that environment. Our active loan book passed £260 million in April and total lending across the business has now surpassed £800 million. Bridging demand held up well across the first six months, while our commercial mortgage proposition has bridging and longer-term commercial lending has continued to blur, because borrowers want the same speed and flexibility whatever the facility is called. Our product development has followed that logic: more semi-commercial solutions for stepping-stone and mixed-use acquisition strategies, and commercial mortgages delivered at bridging speed. gained ground. The traditional boundary between short-term
We expect the second half of 2026 to remain steady. Gradual easing from the current 3.75% base rate should support transaction volumes, and stronger price momentum across regional cities, particularly in the North and Midlands, may provide an additional tailwind. Competition will stay intense. The lenders and brokers who deliver the strongest results will be those combining genuine market expertise with decisive underwriting
and products built around how investors are actually behaving.
9 January - June 2026 Real Estate Funding Report
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