Development Finance Market Barometer Q1 2026

The UK development market in Q1 2026 is characterised by 451,709 residential transactions in the past 12 months across 48 counties. The national median price stands at £275,000, with an average year-on-year change of -1.1%.

Of towns with meaningful transaction volumes, 124 are recording price growth and 207 are seeing declines. New build activity accounts for 10,043 of 451,709 total transactions (2.2%).

London & South East leads by transaction volume with 115,825 sales across 10 counties, at a median price of £396,000 and -0.5% average year-on-year change.

Across 7 counties with planning data (East Sussex, Essex, Greater London, Hertfordshire, Norfolk, Nottinghamshire, Surrey), the development pipeline contains 6,557 relevant applications with an estimated total GDV of £5.5bn and 14,867 residential units.

This pipeline signals continued developer confidence and sustained demand for development finance across the South East and East of England in particular.

Development finance lenders are broadly active in Q1 2026, with appetite strongest in regions showing stable or growing prices. Senior debt is typically available at 60–70% LTV (of GDV) for experienced developers, with rates from 7–10% per annum depending on scheme risk.

For first-time developers or higher-risk schemes, mezzanine finance can bridge the gap between senior debt and equity, enabling projects to proceed with less personal capital. Bridging loans remain the go-to product for site acquisition ahead of planning or development finance drawdown.

The data in this barometer is drawn from Land Registry transaction records and local authority planning portals. For developers looking to capitalise on current market conditions, Construction Capital provides access to 100+ development finance lenders.

Submit your scheme via our deal room for a no-obligation quote, or explore our development finance page to understand the options available.