Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Bridging and Development Finance Market Slows in Q1 2026, Says BDLA

Completions and applications in the UK bridging and development finance market declined in the first quarter of 2026, according to the latest data from the Bridging & Development Lenders Association (BDLA). The figures show a 28% fall in completions to £1.8 billion and a 15% drop in applications to £9.9 billion compared to the previous quarter.

Lender loan books stood at £11.5 billion at the end of March 2026. The average loan-to-value (LTV) ratio also decreased, moving from 58.64% in Q4 2025 to 56.64% in Q1 2026, reflecting a more cautious approach to risk among lenders.

Development lending reached £276.5 million during the quarter, down 34% from £420.3 million in Q4 2025. Second charge lending also fell by 10% to £131.3 million from £145.8 million in the previous quarter.

The BDLA noted that this slowdown follows a long period of growth and comes amid economic and geopolitical uncertainty. Despite the decline in activity, the association reported that the sector continues to be supported by strong demand, disciplined underwriting, and ongoing confidence from lenders and investors.

The BDLA’s quarterly survey, compiled by independent auditors using data from lender members, provides a detailed snapshot of activity in the UK bridging and development finance market.

For letting agents and inventory clerks, these trends may signal a shift in the pace of property transactions and development activity, potentially impacting the volume and timing of new instructions and property turnovers in the coming months.