The UK property market rarely stands still, but right now, those moving parts are particularly dynamic. Foreign ownership of UK property is on the rise, with the latest Benham & Reeves figures showing 189,793 homes now in overseas hands, a 2.6% increase in just a year. Hong Kong, Singapore, the United States and China remain the dominant players, with China posting the sharpest growth at +12.9% year-on-year.
And this isn’t a one-way street. UK investors are increasingly active overseas, seeking returns, lifestyle properties, or strategic diversification in markets from southern Europe to North America. These cross-border flows, combined with domestic shifts, are shaping demand for fast, flexible finance and bridging can be a useful tool to get deals like these over the line.
In the UK, a slower market has left many property sellers in limbo, or forced to question their desired price and drop to a more realistic level reflecting buyer interest. The Bank of England cut interest rates from 4.25% to 4% in August. It is the fifth reduction within the last 12 months and takes rates back to where they were in March 2023.This will stir buyer activity, especially if further cuts come this year although the market remains divided on that prospect. But in the meantime, bridging has always been one way to unlock stalled transactions or release trapped equity.
Specialist sectors are also in flux. Since the post-pandemic holiday let boom market, holiday let licensing and tighter regulations have seen some lenders exit the market, while others have tightened criteria. For borrowers who need to refinance, refurbish or purchase in this sector, bridging may be the solution where mainstream appetite has cooled. Meanwhile, the buy-to-let (BTL) market is quietly regaining momentum. With average UK rental yields now at 7% and mortgage rates edging down to 5.09% for new BTL loans, demand is particularly strong in cities like London, Bristol, Glasgow, Liverpool and Sheffield.
The right opportunity
This combination of market opportunity and constraint is fertile ground for bridging, particularly when a lender can look across asset types and respond quickly. Recently, we supported a client who owned a commercial warehouse but wanted to raise capital to fund the development of four new flats in London.
Traditional funding routes would have required either selling the warehouse or arranging long-form development finance. Instead, we were able to take security over the commercial asset and advance £614,250 at 65% LTV, releasing the funds in time for works to begin. This ability to straddle commercial and residential purposes shows the breadth of options brokers can offer when they work with a lender who has genuine multi-asset expertise.
Bridging is also proving increasingly valuable for those aforementioned internationally minded investors. One experienced landlord recently sought to buy property abroad but needed to release funds quickly from an existing UK buy-to-let to secure the deal ahead of rival buyers. By using an AVM, we kept valuation costs low and advanced £650,000 at 65% LTV, secured solely against the UK property. The refinancing was completed swiftly, enabling the overseas purchase and expanding the client’s portfolio beyond the UK. In a climate where UK investors are becoming more globally active, this kind of cross-border agility is only going to become more relevant.
Ability to work the deal
What underpins each of these examples is the same set of strengths. The ability to lend against residential, commercial, or mixed-security portfolios; the flexibility to use AVM, desktop or full valuations depending on speed and complexity; and the consistency of competitive pricing. The inclusion of title insurance also removes many of the common legal bottlenecks, meaning completions can happen in weeks, not months.
For brokers, this versatility means more solutions to present to clients, whether they’re tackling a stalled sale, working to a hard deadline, or structuring a deal that doesn’t fit neatly into one category. For clients, it’s about certainty. That’s the certainty they can secure the property, release equity, or move their project forward on time and on terms that work for them.
Looking ahead, the interplay between domestic and international property investment is likely to intensify. The UK remains attractive to foreign capital, with robust rental yields and a currency that still offers relative value to overseas buyers. At the same time, British investors are continuing to look outward, particularly in response to domestic tax changes, evolving regulation, and lifestyle choices. If the Bank of England makes further rate cuts before year-end, we could see even greater transaction volumes, but speed and flexibility will remain at a premium.
Bridging is uniquely placed to deliver in this environment. It’s not just a stop-gap or a last-resort product. It’s a strategic tool that can unlock opportunities, navigate market complexities, and connect the dots between different types of property, jurisdictions, and client goals. In a market where timing can make or break a deal, having the right tools for the job and the right partner to deploy them is essential.
Roz Cawood is managing director of property finance at StreamBank
