One in three UK developers cutting back or pausing projects due to funding challenges, says survey

More than half 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.

One in three UK property developers has been forced to postpone or scale back projects due to funding challenges, according to a survey of UK property developers commissioned by Octane Capital.

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, chief executive of Octane Capital, said of the survey carried out 12 days ago: “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.

“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.”