More than half of developers say they are not confident about launching projects within the next year
More than half (51%) of UK developers say they are not confident about launching their next project within the next 12 months due to funding concerns, new research reveals.
A survey of UK property developers commissioned by Octane Capital also found one in three UK property developers has been forced to postpone or scale back projects due to funding challenges.
More than a third (36%) of the 1,003 developers surveyed say they are actively using bridging finance in 2025.
While almost half (46%) of developers said their activity has remained stable compared to 2024, nearly a third (30%) have paused entirely due to market uncertainty.
As well as 51% of developers saying they are not confident about launching projects in the next 12 months, a further 34% have already scaled back or postponed a development in the past year due to financial barriers.
Interest rates remain the most commonly cited obstacle to securing finance, named by 40% of respondents, followed by planning uncertainty or delays (16%) and lender appetite (14%).
Jonathan Samuels, CEO of Octane Capital, said: “It’s clear that 2025 remains a testing environment for property developers, with high interest rates, funding pressures, and market uncertainty weighing heavily on confidence.
”But what’s encouraging is that bridging finance continues to play a vital role in keeping projects moving, offering developers speed and flexibility when traditional funding routes fall short.
Despite the challenges, most developers are still active in the market and can access funding - albeit with more cautious terms. This resilience, supported by specialist lenders, is what will keep the development sector ticking over as we head into 2026.”
The survey of 1,003 property investors active within property development carried out on 18th July 2025.
Yesterday saw the publication of the latest “Red Flag Alert” report from Begbies Traynor, which suggested that 50,000 UK businesses are now in “critical” financial distress amid the current climate of volatile consumer spending, global economic turbulence and rising taxes on business.
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