Searches for property finance reached £21bn in the first quarter of 2025, a 10% increase on the average quarterly figure from 2024.
Data from Brickflow’s Q1 2025 market report showed a significant uptick in specialist finance activity across bridging, development and commercial products, alongside notable changes in lender behaviour and pricing dynamics.
Based on weekly insights from more than 100 lenders, 13,500 live products and 157,000 individual data points, the report showed that greater lender engagement and improved responsiveness have driven an 83% rise in decisions in principle (DIP) issued in the first three months of the year.
A new benchmark for deal responsiveness was set when Octane Capital returned a DIP offer within three minutes of submission for a development exit deal.
The lowest rates across all product categories continued to fall in the first quarter, indicating that lenders are willing to sharpen pricing to secure the right deals.
However, the gap between the cheapest and most expensive products widened.
This growing disparity reinforced the need for expert advice and thorough product comparison.
In terms of bridging finance, demand remained strong, with lenders competing on speed and structure more than on pricing.
The product range expanded, though headline rates varied widely depending on borrower profile and asset type.
In development finance, increased search volumes and faster DIP activity suggested developers are bringing forward schemes in anticipation of a more stable interest rate environment.
Lenders showed more appetite, particularly for mid-size schemes, with the average size of a development search in the first quarter at £5.7m.
In commercial lending, more competitive pricing emerged, but product complexity and lender caution persisted.
Activity grew steadily as investors look to refinance or reposition assets.
Sabinder Robinson-Sandhu, head of growth at Brickflow, said: “This quarter’s data tells the story of a market that’s active, responsive, and increasingly dynamic.
“While there are signs of growing lender competition, borrowers must still navigate a fragmented landscape.
“Data-led platforms and broker expertise are essential to unlocking the best opportunities.”
