The Intermediary – February 2026 - Flipbook - Page 41
draw down funds within as little as 48 hours,
giving them a real advantage at auction or when
pursuing off-market opportunities.”
This, in turn, has opened the door to larger,
more complex schemes.
Gill adds: “SME developers who might once
That speed feeds directly back into auction
have just looked at ground developments are
dynamics. Matt Burrows, NAVA Propertymark
now looking at larger-scale office-to-residential
advisory panel member, says: “Well-priced lots
conversions. Commercial developers will typically
continued to attract strong interest, particularly
look to sit and manage office blocks, repurpose
where reserves were realistic and guidance was
them, or improve covenants within commercial
clear. Demand from cash buyers and experienced
stock and property, for example on high streets.”
investors remain consistent, reinforcing the
Bridging finance is also enabling smaller
relevance of auctions in uncertain market
developers to scale more quickly by funding
conditions.”
multiple projects simultaneously.
Mann notes: “In the SME
Sector variation
With bridging no
Across the market, what began
as a predominantly residential
strategy has expanded into a
broader range of asset classes.
Fix and flip activity now
spans traditional buy-to-let
(BTL), mixed-use buildings,
commercial property, and
sector [...] they’re acquiring
premises, completing works,
longer seen as a last resort
or refinancing quickly to
[...] it serves to empower
most interesting deals tend
a new generation of
investors and developers"
to come from borrowers who
look beyond the property
as it is today, and consider
what it could become
with the right funding
small to medium-sized
enterprise (SME) development, as investors
keep projects moving. The
and a bit of imagination.”
search for value beyond increasingly competitive
However, Cappaert adds nuance, noting that
residential stock. Homeowners, small landlords,
strategy execution varies significantly by sector.
and professional investors alike are able to use
He explains: “Fix and flip looks quite different
refurbishment bridging to acquire auction
across sectors. In residential, the focus is often
properties, improve them, and either sell them
on speed, cosmetic and structural upgrades, and
at a profit or refinance onto longer-term funding.
creating mortgageable, attractive homes for resale
As access to straightforward BTL opportunities
or refinance. Commercial and SME activity is
tightens, more would-be landlords are going to
more varied and often more innovative.”
be willing to take these labour intensive risks.
Gill says: “We have seen an increase from what
He adds: “We’re seeing projects that convert
offices or retail into residential, reconfigure
we would have described in previous times as
mixed-use blocks, or modernise small industrial
your more 'hands-off' or 'armchair' investors
and trade units. SME clients might be owner-
now looking at auction and refurb finance
occupiers improving premises or investors
requirements. As there is a lesser amount of
repositioning assets for new uses.
stock available in the BTL market, investors are
now looking to purchase properties where they
can add capital and rental value.”
According to Mann, residential remains the
“The innovation tends to cluster around mixeduse and alternative sectors: co-working; flexible
retail; or hybrid live-work spaces, where creative
design and planning can unlock significant value.
most common entrypoint, but diversification is
These deals can be more complex, with layered
becoming a defining feature of more experienced
income streams and planning risk, so specialist
investors’ strategies. “As margins tighten, many
bridging and a knowledgeable intermediary
experienced buyers are diversifying into mixed-
become even more important.”
use and light commercial properties, where
there’s still scope to add real value", she notes.
In addition, the pandemic accelerated the
Rental regulations
Nowhere are these dynamics more visible than
decline of certain retail and office spaces,
in the BTL sector. As landlords are increasingly
pushing more commercial stock into auctions
looking to diversify, with capital growth
and creating opportunities for repositioning.
Collar-Brown says: “We are seeing commercial
remaining uncertain, rental income has become
a key motivator for many, helping to justify
investors step in. Councils, for example, are
investment in tired or unmortgageable properties,
releasing garage sites and similar assets, which
particularly where upgrades also address looming
often provide greater longevity and stability than
EPC requirements.
short-term residential tenancies, making them a
safer investment.”
Matthews notes: “Rising rents support the
economics of projects such as HMOs and
p
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