The UK bridging sector surpassed £10bn in annual completions for the first time in 2025 underlining how short-term finance is becoming increasingly embedded within mainstream property transactions.
Analysis from Octane Capital shows total bridging completions reached an estimated £10.03bn last year, up sharply from £7.34bn in 2024 and £5.76bn in 2023.
The figures reflect a significant shift in borrower behaviour as rising rates, inflation pressures and geopolitical instability continue to disrupt traditional lending markets and complicate transactions.
While the final quarter of 2025 saw a slight slowdown, with completions easing 2.1% quarter-on-quarter to just under £2.5bn, the broader trajectory points to bridging becoming a far more central part of the funding landscape.
KEEPING DEALS ALIVE
As transactions become more complex and timelines harder to predict, borrowers are increasingly turning to bridging finance to keep deals alive where mainstream lenders cannot move quickly enough or adapt mid-process.
The sector’s expansion has also coincided with heightened uncertainty around interest rates and lender pricing.
Volatile swap rates, changing affordability models and shifting risk appetite have made long-term finance harder to secure consistently, particularly on time-sensitive transactions.
As a result, bridging is increasingly being used across a wider range of scenarios – from chain breaks and auction purchases to refurbishment exits and refinancing strategies.
EVOLVING LANDSCAPE
Jonathan Samuels (main picture, inset), CEO at Octane Capital, says: “What we’re seeing isn’t just growth in the bridging sector, it’s a reflection of how the wider property market has evolved.
“Transactions are taking longer, conditions are shifting more frequently, and borrowers are having to navigate a far more complex environment than they were even a few years ago.
“Bridging finance has stepped up and into that gap, providing the speed and flexibility required to keep deals moving when more traditional routes can’t keep pace.”
CORE MARKET
He adds: “While there will always be short-term fluctuations, particularly in response to wider economic or geopolitical events, the role of bridging within the market has become far more fundamental.
“It’s no longer simply a niche or alternative option, it’s increasingly becoming a core part of how property transactions are structured and delivered in today’s market.”
The milestone comes as the wider property sector continues to grapple with subdued transaction volumes, refinancing pressure and mounting regulatory change – all factors likely to sustain demand for specialist finance throughout 2026.
