BDLA data shows dip in activity as completions fall to £1.8bn

Applications reached £9.9bn, compared with £11.7 bn in the previous quarter, while total lender loan books stood at £11.5 bn, according to the latest quarterly lending data from the Bridging & Development Lenders Association (BDLA).

Completions totalled £1.8bn in the three months to 31st March 2026, falling from £2.5bn in Q4 2025.

Average LTV ratios also reduced to 56.64%, from 58.64% in the previous quarter, which the association said reflects a continued focus on responsible lending and measured risk appetite.

Development lending totalled £276.5m during Q1, compared with £420.3m in Q4 2025, while second-charge lending stood at £131.3m, down from £145.8m in the previous quarter.

The BDLA said these figures should be viewed in the context of the market’s rapid expansion over recent years, a more cautious wider property finance environment, and a sector that continues to benefit from strong underlying confidence, disciplined underwriting and established demand for flexible short-term funding.

While activity softened during the first quarter, the BDLA said the market remains fundamentally well positioned, with lenders continuing to take a prudent approach to risk and capital providers placing greater emphasis on governance, transparency and proven track records.

Adam Tyler, CEO at the BDLA (pictured above), commented: “After a sustained period of strong growth, it is not surprising to see the market move into a more measured phase. The first quarter of 2026 has been shaped by a number of wider economic and global factors, and these have inevitably influenced confidence and activity across the property and mortgage sectors.

“However, the bridging and development finance sector remains in good shape, with strong foundations, experienced lenders and a clear role to play in supporting borrowers who need flexible, time-sensitive funding solutions.

“Across the wider mortgage market, the last 12 months have been challenging. Brokers, lenders and borrowers have all had to navigate uncertainty around rates, property values, transaction volumes and the broader economic outlook. In that context, some cooling in activity was expected.

“What gives us confidence is the continued professionalism of the sector. Lenders are being disciplined in their underwriting, capital remains available for high-quality lending platforms, and there’s a growing focus on governance, transparency and sustainable growth.”