Four out of five intermediaries say they believe their confidence in the bridging market will increase over the next 12 months, according to the latest figures from Black & White Bridging.
Black & White surveyed 100 intermediaries actively involved in bridging and 82% agreed their confidence would increase within a year, with 20% strongly agreeing. While 14% are unsure, only 4% think their confidence in the market may decline.
The bridge lender said that while the impact of the 2024 Budget and speculation surrounding the 2025 Budget have eroded investor confidence and led to hesitancy, intermediaries will enter 2026 with new clarity on economic policies, leading to market optimism.
When asked which market sectors presented the greatest opportunities for the transition industry over the next 12 months, 57% of respondents recommended a return to transition trading. Development exit refinancing and residential purchase tied for second, each receiving 11% of the vote.
Re-bridging transactions were seen as the biggest driver of growth in all regions except London, where the results were more mixed. In the capital, residential purchases topped the list with 36% of the vote, while re-bridging received 29% support and commercial property acquisitions received 14% support.
Black & White’s research also found that market sentiment has improved significantly since 2024. Nine in 10 intermediaries surveyed (90%) said their confidence in the market had increased over the past 12 months, while only one in 50 (2%) said their confidence had declined.
However, brokers operating outside the capital, in the north, midlands and south of England, are more active than those operating in London. While 95% of brokers outside London said their confidence in the market had increased in the past year, only 64% of those operating in London said the same.
Damien Druce, chief operating officer at Black & White Bridging, said: “Months of budget speculation surrounding the mansion tax have hit the London market harder than the rest of the UK. Rich people have been selling off properties and leaving the UK, leading to oversupply at the top of the London market and reduced demand for high-value properties.”
“As a result, developers and property investors are less willing to take risks in the capital. But investor sentiment looks set to change in 2026 as the market returns to some sense of normalcy following the Budget fiasco.”
