The latest data from Brickflow reveals significant activity in the bridging finance sector, with £520 million in property finance offers recorded in the second quarter of 2026. This surge highlights the ongoing demand for development and bridging finance, despite a slight decline in search activity.
How Did Bridging Finance Perform in Q2 2026?
Bridging finance offers totalled £258.9 million in the second quarter, contributing to the overall £520 million in property finance offers reported by Brickflow. Development finance, which represented 61% of the total value of searches, amounted to £236.5 million, indicating a strong interest in funding property developments. However, searches for bridging finance fell by 13.6%, suggesting a cooling in immediate demand.
What Trends Are Emerging in Property Finance?
While bridging finance offers decreased, requests for decisions in principle increased by 6% for bridging finance and 12% for commercial mortgages. This indicates that while immediate applications may be declining, there is still a growing interest in securing finance for future projects. The overall decline in bridging searches aligns with broader market trends, as reported by the Bridging & Development Lenders Association, which noted a 15% drop in applications across the market in Q1 2026.
What This Means for Borrowers and Investors
For landlords, borrowers, and investors, the current market suggests a cautious approach to bridging finance. The decrease in search activity could indicate a shift in market sentiment, prompting stakeholders to reassess their financing strategies. However, the increase in lenders willing to finance land with detailed planning permission—up 61% from the previous quarter—could present new opportunities for development projects.
Frequently Asked Questions
What types of finance are included in the £520 million figure?
The £520 million includes bridging finance offers (£258.9 million), development finance (£236.5 million), and commercial mortgage offers (£24.6 million).
Why did bridging searches decline in Q2 2026?
The 13.6% decline in bridging searches may reflect a broader market cooling, as indicated by similar trends reported by industry associations.