Funding with Intent: A 2026 Outlook from Firma Partners
Estimated reading time 2 minutes
Our Chief Executive, Victor Librae, outlines a measured but constructive view of the UK real estate lending market in 2026 in this CRE Media feature.
Victor expects private credit to remain an important source of liquidity, as investors seek stable, risk-adjusted returns, and borrowers increasingly prioritise direct engagement with experienced lender leadership over bureaucratic credit processes. Borrowers should assess more than headline rates when choosing finance, placing value on flexible terms such as extension options, staged covenants and tailored drawdown mechanics. In this environment, lenders that act as strategic partners and provide market insight and network support will be positioned to win greater trust and participation from developers.
Looking specifically at the UK, Victor sees the structural shortage of housing as a supportive backdrop for living-sector lending, even as rates evolve. He stresses the importance of aligned, flexible capital that supports real business plans and avoids overly rigid frameworks that can derail projects. With banks expected to continue providing back-leverage to specialist lenders, transaction timelines should become more manageable, helping to sustain deal activity.
There is also the rising role of brokers in guiding borrowers through an increasingly varied lending landscape. Deep development finance expertise matters, particularly in navigating project delays and cashflow variability, while less experienced capital can inadvertently contribute to defaults and erode value.
