The group’s latest UK Real Estate Report has also found developers are adapting to a changing interest rate environment and taking advantage of constrained traditional lending.

This has created a renewed focus on forward funding as a preferred route for large-scale residential and living sector schemes.

As such, BTR, PBSA and I&L schemes have been identified as the ‘most robust’ pillars of the UK real estate market.

The report has found that institutional investors, particularly pension funds and long-term real estate platforms, are taking advantage of the opportunity to secure income-producing assets at early-stage pricing.

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“The second half of 2025 marks a turning point for the UK property sector, and we’re seeing tentative but genuine signs of recovery, supported by a more stable rate environment and increased policy intervention,” said Sam Lewis, director of debt advisory at Heligan Group (pictured above).

“As the traditional debt markets have tightened, developers are increasingly looking to forward funding to bridge the gap between ambition and liquidity. Institutional capital has recognised this shift and is responding decisively.”

Looking ahead, and with competition heating up to fund UK property, the report points to the emphasis on bespoke financing solutions.

“Forward funders expect clarity, credibility, and commitment — those who can demonstrate this will find that capital is still available, even in a challenging macro environment,” added Sam.

“The forward funding resurgence will remain a defining feature of the real estate finance landscape into 2026, as the market transitions from caution to selective confidence.”