The Past, Present and Future of Bridging – Mid-2025 Perspective

The UK property finance landscape has continued to evolve at pace. In just a few short years, we've seen bridging finance transform from a niche, last-resort product into a mainstream solution—frequently used by homeowners, developers, landlords and business owners alike. And in a market still often defined by uncertainty, bridging remains one of the few tools capable of providing speed, flexibility, and practical funding at short notice.

The past 18 months have underscored this. With high interest rates slowly giving way to base rate reductions, and mainstream lenders continuing to tighten affordability criteria, borrowers have increasingly looked beyond the high street for solutions.

Collating data from the many bridging lenders, particularly non-regulated ones, remains a challenge but it is suggested the market could be worth up to £10 billion annually across regulated and non-regulated loans.

Figures from the first half of 2025 suggest a similar pattern and a stable market, with chain breaks, refurbishment projects and regulated purchases among the biggest drivers of demand.

A Product That’s Evolved with the Market

This continued growth isn’t accidental. Bridging finance has matured. It’s no longer seen as a stop-gap, but as a strategic tool—able to support a wide range of scenarios that fall outside the scope of traditional mortgages. Complex credit, unusual properties, cross-border transactions, short leaseholds, inheritance delays… the list goes on.

This adaptability has allowed bridging to thrive even as the wider lending market has at times stagnated. In many ways, its strength lies not just in what it offers, but in how it's delivered. Lenders, brokers and specialists in this space have become experts at reading between the lines—understanding the ‘why’ behind a deal, not just the ‘what’. This has enabled them to deliver bespoke products at really competitive margins.

What’s Driving the Market in 2025?

1. Ongoing affordability challenges

Mainstream affordability has shown little sign of easing in 2025. While inflation has fallen back from its peak, the Bank of England has kept rates higher for longer to manage persistent economic volatility. This has made traditional borrowing harder for many—especially those with multiple income sources, complex tax structures or non-UK residency.

As a result, regulated bridging continues to grow. Homeowners are using it to purchase before selling, downsize in stages, or unlock capital ahead of remortgage conversations. For advisers, recognising when a client might benefit from this approach—and referring them to a specialist—is now part of good practice.

2. Housing stock shortages and refurbishment trends

The shortage of good quality, rentable housing remains a long-term issue. Many landlords and investors are turning to older or underused properties—bringing them back to standard through refurbishment, conversion or development. Bridging is the enabler here: quick access to funds, even when the property isn’t immediately mortgageable.

Projects like these don’t just need money—they need the right structure, pace and exit plan. That’s why adviser referrals into specialist finance are so important. A bridging loan may only last months, but its impact on the overall success of a deal can be long-lasting.

3. EPC improvements and sustainability pressures

While the government pushed back the original 2025 EPC deadline, the market hasn’t stood still. Tenant expectations are changing. Lenders are increasingly building energy performance into their pricing models. And many landlords are taking pre-emptive action—funding upgrades such as insulation, heating, or solar through short-term finance.

Bridging provides a flexible route to finance these works without affecting long-term mortgage plans. As the green agenda becomes more embedded in property ownership, expect to see more cases where short-term funding plays a role in modernising the UK’s ageing housing stock.

4. The value of expert referral

Bridging loans aren’t plug-and-play products. They require careful structuring, clear exit strategies, and a real understanding of the borrower’s intent to ensure the product recommended is 100% suitable for a client’s needs. That’s why referrals into specialists remain essential.

Whether it’s a regulated deal with tight deadlines, or a commercial project needing complex underwriting, referring into the right partner ensures clients receive advice that’s not only compliant, but outcome-focused. In today’s market, knowing when to refer is just as important as knowing when to recommend.

Looking Ahead

The remainder of 2025 will continue to challenge the industry. Shifting tax policies , potentially more base rate cuts and ongoing economic readjustment all lie ahead. But if the past two years have taught us anything, it’s that bridging doesn’t just survive in volatile conditions—it often performs best in them.

As more brokers and advisers embrace the role of specialist finance in delivering client outcomes, the ability to spot a bridging case—and refer it with confidence—will only grow in importance. Not every case fits a mainstream mould. That’s not a problem. That’s an opportunity.

If you’re considering bridging finance for your client, please find more information here . To make a referral, contact Fluent’s dedicated broker team on 01204 472030 or email Fluentpartners@fluentmoney.co.uk. 

For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.