Brickflow recorded 4,016 loan searches in Q3 2026, down 20% on Q2. The total property value searched fell 25% to £10.36 billion. But the headline slowdown masks differences between asset types, regions and the terms available from individual lenders.
This edition of MarketWatch examines search activity, lender appetite, interest rates and the gap between the highest and lowest net loans offered on the same scenarios.
BRIDGING | COMMERCIAL | DEVELOPMENT
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July–September 2026
Search volumes declined across every asset type. Residential remained the largest category, with 2,578 searches, while multi-let residential was comparatively resilient: searches fell just 2%, and property value searched rose 20%.
| Asset type | Searches | Quarter-on-quarter | Property value | Quarter-on-quarter |
|---|---|---|---|---|
| Residential | 2,578 | Down 22% | £5.68bn | Down 35% |
| Mixed use / semi-commercial | 578 | Down 22% | £1.49bn | Down 36% |
| Multi-let residential | 118 | Down 2% | £373m | Up 20% |
| Office & retail | 213 | Down 11% | £327m | Down 6% |
| Land | 105 | Down 30% | £404m | Down 19% |
| Industrial | 111 | Down 10% | £183m | Down 65% |
| Leisure & hospitality | 180 | Down 16% | £820m | Up 39% |
| Healthcare & care | 51 | Down 27% | £321m | Up 31% |
| All asset types* | 4,016 | Down 20% | £10.36bn | Down 25% |
*Includes student, education & community, agricultural & rural, and a small number of searches with no property type.
Housebuilding activity declined in each month of Q3, faster than commercial building (S&P Global’s UK Construction PMI for July–September 2026), while two-year fixed mortgage rates rose from 4.83% in January to 5.63% by August, amid Middle East tensions (Moneyfacts’ August 2026 UK Mortgage Trends)
Meanwhile, landlords are adapting following May’s Renters’ Rights Act changes, with more rental properties selling landlord to landlord and investors buying 14.1% of homes in July (Hamptons’ August 2026 research).
Regional differences remained clear: the North West recorded the highest rate at DIP rate at 72%, while London, the busiest region for searches, sat just below the overall figure at 60%.
| Region | Deals | Deals receiving at least one DIP | % receiving at least one DIP |
|---|---|---|---|
| North West | 46 | 33 | 72% |
| East of England | 54 | 36 | 67% |
| Midlands | 44 | 29 | 66% |
| South East | 75 | 48 | 64% |
| London | 72 | 43 | 60% |
| South West | 34 | 20 | 59% |
| North East | 26 | 15 | 58% |
| Scotland | 20 | 10 | 50% |
Across all regions, 62% of 392 deals received at least one DIP. Wales (14 deals), Northern Ireland (7) and the Channel Islands (0) are excluded from the regional comparison because volumes were too small to rate. Deals were sent to 3.4 lenders on average. Percentages are rounded.
This measure is the proportion of deals receiving at least one DIP. A deal receiving several DIPs counts once. DIPs are not final loan approvals or completed transactions.
A higher share of deals received a DIP. The overall rate rose from 46% in Q3 2025 to 62% in Q3 2026, an increase of 16 percentage points. London remained the busiest region for searches, but its 60% DIP rate was slightly below the overall figure.
The North West led the regional comparison. At least one DIP was returned on 33 of 46 deals (72%), ahead of the East of England at 67% and the Midlands at 66%.
Scotland recorded the lowest rate among the regions shown. Ten of 20 deals received at least one DIP (50%), albeit on just 20 deals.
Looking only at residential data, house price research shows contrasting regional conditions. London house prices were down 3.3% in the year to July, following 11 months of easing, and international buyer research also points to fewer overseas investors buying at the top end of the London market. (HM Land Registry, Lloyds’ July 2026 HPI, Hamptons’)
North West house prices rose 4.4% in the year to July, second only to the North East in England. ONS private rental data for August 2026 also showed rents in the North West rising by 5.8%.
Scottish house prices rose 3.6% in the year to July, the second-strongest growth in the UK after Northern Ireland. Yet Scotland recorded the lowest DIP rate in Brickflow’s regional comparison. Stronger prices do not necessarily translate into a stronger lender responses / higher proportion of deals receiving a DIP.
Average advertised and DIP-offered rates were closely aligned for bridging and development finance, while commercial mortgage rates offered at DIP were slightly higher than the advertised average.
| Finance type | Advertised average | Average offered at DIP | Rate basis |
|---|---|---|---|
| Bridging | 0.89% | 0.88% | Monthly |
| Commercial mortgage | 7.65% | 7.94% | Annual |
| Development finance | 10.16% | 10.18% | Annual |
Advertised averages provided a close guide to DIP rates for bridging and development finance in this dataset.
Development finance had the widest advertised rate spread: rates for a single asset type could differ by up to five percentage points.
Bank of England rate held at 3.75% all quarter, allowing lenders to hold their pricing, consistent with offered rates staying close to advertised rates. However, swap-driven fixed rates rose in Q3 as markets priced in future rate rises, pushing up the cost of longer-term fixed borrowing.
Development finance is always priced deal by deal, but now lenders are factoring in additional risks: sector-high construction insolvencies (Insolvency Service), struggling small housebuilders (Savills) and energy-driven build cost uncertainty.
For more graphs, charts and insights, read the full MarketWatch Q3 report.
MarketWatch is based on Brickflow platform activity, including loan searches, property values and DIPs provided. It is backed by more than 200,000 lender data points that are continually updated.
During Q3, July–September 2026, we recorded:
| Finance type | Searches | Property value | DIP requests |
|---|---|---|---|
| Bridging | 2,506 | £3.59bn | 989 |
| Commercial mortgage | 761 | £1.31bn | 79 |
| Development finance | 749 | £5.47bn | 266 |
| Total | 4,016 | £10.36bn | 1,334 |
Property value is the total value of properties searched in Q3, not lending completed. Figures are rounded; individual property value rows may not sum exactly to the reported total. Searches and DIP requests are measures of platform activity, not loan approvals or completed transactions.
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More than 350 broker and debt advisory firms, over 160 lenders and over 23,000 property investors use Brickflow to search, compare and secure bridging, commercial and development finance.
Brickflow is a software platform, not an advisory business, and does not provide financial advice or recommendations. Its specialist property finance content is intended for experienced professionals, not personal mortgage borrowers. Property development loans are debt and carry risk. Personal guarantees can put personal assets at risk. Rates and lending terms depend on the lender and individual transaction.