Arc & Co. reports 108% growth YoY in arranged lending

By Bridging Loan Directory 29th July 2025

Specialist debt and equity advisory Arc & Co. has published its annual report for the 12 months to 30 June 2025, revealing a significant uplift in lending and deal activity across the business.

Headline figures:

Lending up 108%, from £332m to £690m
218 deals completed
Office lending hit £118m across 15 deals
Development finance rose by 273%
London accounted for 42% of deal volume

The report breaks down loan activity across commercial, development, bridging, BTL, luxury asset, and residential mortgage sectors.

Residential led the way, representing 35% of total lending, although that figure dropped from 48% the previous year.

Office and hotel activity saw notable growth, while purpose-built student accommodation (PBSA) accounted for 9% of overall lending, a marked increase from the previous year when no PBSA deals were recorded.

BTL lending was buoyed by developers becoming accidental landlords and stronger rental yields making refinancing more attractive.

A shift in bank appetite has also helped drive commercial lending, with loan volumes up 110% year-on-year. Improved product availability and more competitive rates contributed to the rise.

Development finance saw a major boost as developers moved towards operational living sectors such as PBSA, co-living, and senior living. Pressure on landowners to build out to realise equity also supported the surge.

Andrew Robinson, CEO of Arc & Co., said:

“We’ve seen exceptional year-on-year growth, with lending arranged more than doubling to £690m. The number of deals and average size both increased, signalling a more confident market.

There’s been a significant shift in activity, especially in commercial and development lending. Development finance nearly tripled, fuelled by a move away from traditional build-to-sell and towards operational living, sectors that remain more resilient despite headwinds in the housing market.”

Edward Horn-Smith, Managing Director, added:

“One of the most notable changes over the year was the sharp rise in available liquidity. Some banks increased maximum LTVs from around 50% to as high as 75%, thanks to stronger balance sheets and a desire to deploy surplus capital.

We expect this trend to continue, with banks relaxing interest cover ratios and loan covenants to support borrowers. At the same time, private lenders will need to find alternative ways to stand out.

Our growth has been driven by the strength of our team, smart adoption of technology, and an ability to manage complex, layered transactions.

As lending conditions improve, the market outlook is positive, but careful navigation is essential given valuation pressures, changing investor sentiment, and macroeconomic uncertainty.”