UK property developers are increasingly leaning on bridging finance to sustain their projects amid a climate of financial uncertainty, according to new research from specialist lender Octane Capital.

The survey of UK developers, commissioned by Octane, found that 36% are actively using bridging loans in 2025 — more than any other form of funding. Traditional options such as buy-to-let or commercial loans were cited by 22% of respondents, with a further 17% opting for refurbishment finance.

While nearly half of developers (46%) report stable activity compared to last year, 30% have paused projects entirely due to market conditions, 13% are pursuing a more selective pipeline, and just 12% have managed to increase their output.

Wider sentiment appears equally cautious. More than half of those surveyed (51%) admitted they are not confident about launching their next project within the next 12 months, and 34% confirmed they had already scaled back or postponed a scheme in the past year due to financial constraints.

OBSTACLES

High interest rates remain the most frequently cited obstacle to securing finance, identified by 40% of developers. Planning delays and uncertainty followed at 16%, while 14% pointed to a lack of lender appetite.

Yet there are signs of resilience. Despite the challenges, 65% of developers rated their access to specialist development or exit finance as “reasonable” or better — a signal that while conditions may have tightened, access to funding has not closed off entirely.

Jonathan Samuels, chief executive of Octane Capital, said: “It’s clear that 2025 remains a testing environment for property developers, with high interest rates, funding pressures, and market uncertainty weighing heavily on confidence.

“But what’s encouraging is that bridging finance continues to play a vital role in keeping projects moving, offering developers speed and flexibility when traditional funding routes fall short.

Despite the challenges, most developers are still active in the market and can access funding — albeit with more cautious terms. This resilience, supported by specialist lenders, is what will keep the development sector ticking over as we head into 2026.”