Re-bridging seen as key driver of future activity
Four in five intermediaries anticipate that their confidence in the bridging market will increase over the next year, according to research from specialist lender Black & White Bridging.
The firm surveyed 100 intermediaries active in the bridging sector. Of those polled, 82% said they expected their confidence in the market to improve over the next 12 months, including 20% who agreed strongly. A further 14% were unsure, while 4% predicted a decline in confidence.
The findings come against a backdrop of expanding market activity. The bridging finance sector showed strong growth in the three months to the end of September 2025, with both new lending and new applications rising on a quarterly basis, according to data from the Bridging & Development Lenders Association (BDLA). Loans completed during the period reached £2.5 billion, up 9.6% on the previous quarter and 42% higher than in the same quarter of 2024. New applications totalled £11.4 billion, an 11.8% increase quarter on quarter and broadly in line with the pace seen a year earlier.
Black & White Bridging said the 2024 Budget and speculation around fiscal policy for 2025 had weighed on investor sentiment and contributed to delays in decision-making. However, the lender reported that intermediaries are approaching 2026 with greater clarity on the economic outlook, which it believes is feeding into a more positive market view.
“Despite brokers’ concerns around the chaotic Autumn Budget and the turbulence of the last few months, it’s reassuring to see that confidence in the mortgage and bridging market is looking so high,” said Damien Druce (pictured right), chief operating officer at Black & White Bridging.
“Following two challenging Autumn Budgets in a row, market conditions can only improve. Unless Chancellor Reeves has fluffed her numbers, we should expect a less punishing Budget in 2026.”
When asked where they saw the greatest scope for bridging activity over the coming year, 57% of intermediaries identified re-bridging cases as the main area of opportunity. Development exit refinancing and residential purchase transactions were each highlighted by 11% of respondents.
Regionally, re-bridging was viewed as the primary growth driver across most of the country, but London showed a different pattern. In the capital, 36% of intermediaries pointed to residential purchases as the main opportunity, ahead of re-bridging at 29%. Commercial property acquisitions were cited by 14% of London respondents.
“If brokers are right and 2026 does turn out to be economically more positive, bridging products are set to provide fast and flexible financing for investors looking to make quick, strategic deals,” Druce said.
“Brokers need to be able to advise clients of options beyond standard financing solutions. Flexibility and affordability will be key. Having said that, re-bridging can be risky and I wouldn’t want to endorse it as a growth opportunity.”
The survey findings also suggest a marked shift in sentiment compared with 2024. Black & White Bridging reported that 90% of intermediaries said their confidence in the market had improved over the past year, while only 2% indicated that their confidence had fallen.
Brokers operating outside London – including those in the North, Midlands and the South of England – were notably more upbeat than those based in the capital. Some 95% of intermediaries outside London reported higher confidence over the last 12 months, compared with 64% of London-based brokers.
“Months of budget speculation around a mansion tax have dampened the London market more significantly than other areas of the UK,” Druce noted. “Wealthy people are selling up and leaving the country in their droves, leading to an oversupply at the top of London’s market and less demand for higher-value properties.
“As a result, developers and property investors have been less willing to take risks in the capital. But investor sentiment looks set to change in 2026 as the market returns to some sort of normality after the carnage of the Budget.”
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