Bridging and development finance still holding up, despite market uncertainty

The survey of 320 high-net-worth property investors*, commissioned by West One Loans, found that despite the challenges facing property investors in recent years, three in five investors (59 per cent) said their level of investment activity has remained consistent, while 10 per cent reported increasing their activity. 

 

Bridging and development finance have played a key role in supporting this resilience, with 67 per cent of investors having used one or both of these specialist finance options over the past two years.

 

Investor sentiment has been cautious, with only 4 per cent describing market conditions as very positive and 9 per cent feeling optimistic. Meanwhile, 29 per cent said they were cautious, 20 per cent uncertain, and 15 per cent negative. 

 

The main challenges cited include economic instability (26 per cent), political uncertainty (20 per cent) and rising costs of materials and labour (13 per cent), alongside regulatory changes and increased interest rates.

 

Among investors using bridging finance, the ability to access funds quickly was the most valued benefit (33 per cent), followed by flexibility to act on time-sensitive opportunities (26 per cent). For development finance users, speed of funding and potential for stronger returns from larger projects were both highlighted by 21 per cent of respondents.

 

Looking ahead, 27 per cent of investors are actively considering new property investments this year, with a further 22 per cent open to investing depending on market conditions. Buy-to-let and refurbishment projects remain the most popular strategies.

 

“The past two years have tested even the most experienced property investors, but the response has not been to retreat,” said Thomas Cantor, Co-Head of Short-Term Finance at West One Loans. “Instead, many have used specialist finance to adapt quickly, unlock capital and act decisively in a changing market. 

“With strong ongoing interest in new investments and a majority planning to use bridging or development finance again this year, demand for flexible, short-term funding is set to remain a core part of the property investment landscape.”

 

*Survey of 320 property investors with investable assets of £500,000 or more carried out by ProperPR on behalf of West One Loans via consumer research platform Find Out Now (23 June 2025).

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www.westoneloans.co.uk/blog/ridging-and-development-finance-amid-market-uncertainty