Three-quarters of UK property investors plan to continue using bridging or development finance to seize opportunities in an uncertain market, according to new research by specialist lender West One Loans.
In a survey of 320 high-net-worth property investors, 67% said they had used one or both forms of specialist finance over the past two years.
Despite economic and political instability, three in five investors (59%) reported steady investment activity, with 10% having increased their involvement in the market.
Investor sentiment remains cautious. Just 4% of respondents described the market outlook as “very positive,” while a further 9% felt optimistic. Nearly two-thirds labelled conditions as either cautious (29%), uncertain (20%) or negative (15%).
ECONOMIC INSTABILITY
Economic instability topped the list of concerns, cited by 26% of respondents, followed by political uncertainty (20%), rising materials and labour costs (13%), and increased regulation and interest rates.
Bridging finance continues to appeal for its speed and agility, with 33% of users highlighting fast access to funds as the top advantage, followed by flexibility to act on time-sensitive deals (26%).
Among development finance users, speed of funding and the ability to undertake larger, potentially higher-return projects were each valued by 21% of respondents.
Looking ahead, 27% of those surveyed said they were actively considering new property acquisitions in 2025, with another 22% open to investing depending on how the market evolves. Buy-to-let and refurbishment strategies remain the most popular routes.
STRATEGIC SHIFT
Thomas Cantor, Co-Head of Short-Term Finance at West One Loans, said: “Rather than retreat, experienced investors are leaning into market volatility with confidence.
“The continued appetite for bridging and development finance reflects a strategic shift towards more flexible, responsive funding solutions to navigate today’s complex property landscape.”
