Industry Insights: What the Last Three Years of Data Tells Us

Over the past three years, the specialist property finance industry has experienced significant change. Shifts in economic conditions, client priorities, and regulatory focus have all influenced how and why people are borrowing.

At Pure Property Finance, we regularly review our own data to understand emerging trends and ensure we continue to support clients in the most effective and responsible way. So, let’s take a high-level look at key insights from the last three years, focusing on loan purpose, average loan size, product selection, and application trends.

(All figures referenced below are based on our internal data and reflect real client activity over the past three years.)

Purpose of Loan: Trends Over the Last Three Years

The loan purpose is often one of the clearest reflections of the wider market conditions. Whether clients are borrowing to purchase, refinance, consolidate, or raise capital, these decisions are typically influenced by wider economic conditions, property market movement, and personal or business circumstances. Reviewing how loan purposes have changed over the last three years allows us to identify not only what clients are doing, but why those behaviours may be changing.

Key observations:

• In 2023, the most common loan purposes were purchasing an investment property and completing home improvements/refurbishments
• By 2024, we saw a shift towards consolidating unsecured credit and purchasing properties at auction indicating financial distress with consumers both attempting to improve their situation and more experienced investors taking advantage of distressed assets
• In 2025, we saw consolidating credit remain the most common loan purpose but also a return of home improvements as the second most common suggesting that while people are still finding it tough, there is hope for the future as consumers invest in their properties to create better living spaces and maximise value.

 Average Loan Amount: How Borrowing Levels Have Changed

The average loan size is a strong indicator of affordability pressures, confidence in the market, and the scale of funding clients require. Changes in borrowing amounts are often driven by factors such as interest rate movements, property valuations, build costs, and access to lending. By comparing average loan amounts year-on-year, we can better understand how client needs and risk appetite have shifted.

Headline figures:

• Average loan amount in 2023: £139,624
• Average loan amount in 2024: £143,432
• Average loan amount in 2025: £169,570

What this tells us:

There has been an overall increase of around 21%  in the average amount borrowed across the three-year period.

Although the rate of house price growth has slowed since 2022,the trend above highlights the strength of UK real estate. The recent stabilisation, and now reduction of interest from the BoE could also be said to have influenced the amount being borrowed as finance in general, and especially home finance is becoming cheaper and more appealing.

Application Times: Why speed matters more than ever

Speed is always one of the top considerations for all profiles of clients, whether it’s wanting to move into your first home as soon as possible, completing the extension before winter or ensuring your development is in a saleable condition.

Product mix breakdown:

• Bridging Finance: Average application times have improved by 10% from 2023 to 2025
• Development Finance: Average application times have improved by 15% from 2023 to 2025
• Residential Mortgages: Average application times have improved by 25% from 2023 to 2025
• Secured Loans: Average application times have improved by 55% from 2023 to 2025

 Key changes:

• We’ve made significant developments in our customer journey during this time, fully embracing technological developments especially automation of data transfer through API’s and Robotic Process Automation
• It’s even easier for customers to engage with our process through digital forms, secure file transfers and multi channel outreach
• Similar changes have been made across the industry with lenders and other third parties

 What this tells us:

It is especially pleasing for us to see that the investments we have made in technology and people are starting to have a positive impact for our team and our clients.

A significant part of our strategy for 2026 is a continuation of these process improvements with further integrations planned for our key partners, like Planning Portal.

This will help us reduce duplication i.e clients giving the same information to several people they deal with throughout their project/application.

What This Means for Clients Going Forward

Based on these trends and how they all fit together, the data shows us that the average homeowner has been facing some challenges over the last few years. Although the economy doesn’t appear to be out of the woods just quite yet, we are starting to see what looks like the green shoots of recovery.

It’s also clear that UK property values remain robust, allowing people to utilise the equity they’ve built up to achieve their goals.

There significant positives heading into the new year but we must always be aware that the outlook can change very quickly.

With our strategy for 2026 focusing on speeding up the application process even more, and building on our existing partnerships, we believe that we are in a unique position to help our clients navigate the finance journey from start to finish

At Pure Property Finance, these insights shape how we advise clients, select lenders, and ensure outcomes remain appropriate, especially during periods of uncertainty.

Industry data is more than just numbers, it tells the story of real people, real challenges, and real opportunities. As market conditions continue to evolve, we remain committed to using insight-led advice to help clients make informed decisions.

If you’d like to discuss how these trends may affect your own circumstances, please get in touch with our team on 02920 766 565 or [email protected] .