Arc & Co. reports 108% growth YoY in arranged lending
We are pleased to publish our Annual Real Estate Funding Report 2024/25, detailing Arc & Co.’s performance for the 12 months up to 30th June 2025.
Key figures:
Lending grew by 108% from £332m to £690m
A total of 218 deals were completed across the business
Lending on offices surged to £118m across 15 deals
The amount of development funding increased by 273%
London represents 42% of transactional activity by number of deals
The report breaks down loan activity across commercial, development, bridging, BTL, luxury asset and residential mortgage lending from 1st July 2024 to 30th June 2025.
Asset types are reflected as a proportion of overall lending, with residential topping the graph at 35%, but down from 48% in 2023/4.
Hotel and serviced apartments as well as office activity rose significantly for the period, and PBSA came in at 9% compared to the previous year when no deals of this kind were completed.
The growth of BTL lending was fuelled by developers becoming accidental landlords and rental yield growth improving refinancing options.
The changing appetite of the banks is driving the uptick in commercial lending—which increased by 110% in terms of loan volume—with products and rates markedly improved YoY.
Developers pivoting to the operating living sector has boosted development figures, as well as pressure on landowners to build out to realise their equity.