The UK bridging finance market continues to demonstrate resilience in 2025, showing strong demand even amid broader uncertainty in the housing and development sectors. According to data from several major lenders and the Bridging Loan Directory, average monthly rates fell to around 0.81% in Q2 2025, down from 0.86% in the previous quarter.
At the same time, applications for short-term finance increased by roughly 11% year-on-year, signalling that investors and property professionals are taking advantage of competitive pricing to fund purchases, conversions, and developments.
Although total lending volumes remained relatively stable at around £200 million in the quarter, analysts suggest the market is maturing — moving away from its perception as a “last resort” and into a mainstream investment and funding option.
This trend reflects a more sophisticated borrower base, including professional landlords, developers and corporate entities seeking speed and flexibility over bureaucracy. With banks still applying strict affordability checks and extended approval times, bridging finance continues to fill a crucial liquidity gap.