The first quarter of 2025 has seen a marked surge in activity across the UK’s specialist property finance market, according to Brickflow’s latest market report, with borrower demand, lender responsiveness and overall market efficiency all reaching new highs.

Drawing on more than 157,000 data points from weekly interactions with over 100 lenders and 13,500 live finance products, the report offers the clearest view yet of the changing dynamics in bridging, development and commercial lending.

SEARCH VOLUMES

Loan search volumes climbed to £21bn in Q1, a 10% increase compared to the 2024 quarterly average. The figures suggest renewed confidence among borrowers and heightened competition among brokers actively sourcing competitive finance.

The number of decisions in principle issued also rose sharply, up 83% in the quarter, with improved lender responsiveness and digital engagement driving faster turnaround times. One example came from Octane Capital, which issued a DIP in just three minutes for a development exit loan.

MIXED PICTURE

Despite this overall acceleration, the market remains nuanced. While the lowest rates across all specialist lending categories have continued to fall — a sign of increased lender competition — the gap between the cheapest and most expensive products has widened. Brickflow interprets this divergence as a sign of continuing market fragmentation, underscoring the importance of broker insight and data-driven product comparisons.

In the bridging sector, demand remained resilient through the first quarter. Lenders are now competing more on structuring deals and speed of delivery than pure headline rates, with pricing still varying significantly depending on asset type and borrower profile.

DEV FINANCE APPETITE

Development finance searches were also on the rise, with the average size of a search reaching £5.7m. The data suggests many developers are accelerating plans amid signs of greater stability in the interest rate environment. Lender appetite has strengthened, particularly for mid-sized schemes, supported by quicker initial approvals.

Commercial lending saw more modest growth in activity, though pricing has become increasingly competitive. Product complexity and lender caution remain features of the landscape, yet investors are clearly seeking to refinance or reposition assets, encouraged by signs of broader market momentum.

“This quarter’s data tells the story of a market that’s active, responsive, and increasingly dynamic,” said Sabinder Robinson-Sandhu, head of growth at Brickflow.

“While there are signs of growing lender competition, borrowers must still navigate a fragmented landscape. Data-led platforms and broker expertise are essential to unlocking the best opportunities.”