"Development finance almost tripled over the year, largely driven by operational living sectors which have struggled amid a cooling residential sales market and the introduction of legislation such as the Building Safety Act"
- Andrew Robinson - Arc & Co.
Specialist debt and equity advisory Arc & Co. more than doubled its arranged lending over the year to 30 June 2025, rising 108% to £690 million, according to its newly released annual report.
A total of 218 deals were completed across the business during the 12-month period. Development funding saw the largest jump, up 273%, while commercial lending rose 110% in loan volume, driven by improved products and more competitive rates.
Lending on offices reached £118 million across 15 deals, and London accounted for 42% of deal activity by number.
The company’s activity spanned commercial, development, bridging, BTL, luxury asset and residential mortgage lending. Residential was the largest asset class at 35% of total volume, though down from 48% the previous year. Hotel, serviced apartment, and office deals all rose. Purpose-built student accommodation (PBSA) accounted for 9% of total lending, up from zero in the prior year.
Arc & Co. said growing BTL volumes were influenced by rental yield growth and developers becoming accidental landlords. Development figures were also boosted by pressure on landowners to build out and a shift towards operational living sectors, such as co-living, PBSA, and senior living.
Andrew Robinson (pictured left), CEO of Arc & Co., said, “We have experienced exceptional YoY growth at Arc & Co., with the total amount of lending arranged more than doubling from £332m to £690m. The number of deals and average deal size increased significantly, reflecting a more confident market,"
“Development finance almost tripled over the year, largely driven by operational living sectors which have struggled amid a cooling residential sales market and the introduction of legislation such as the Building Safety Act.”
Managing director Edward Horn-Smith (on the right) noted a sharp rise in available liquidity over the year.
“Within commercial funding, some banks raised maximum LTVs from around 50% to as high as 75%, driven by stronger balance sheets and the need to deploy surplus deposits.
“We expect banks will continue to ramp up the deployment of capital. This will result in private funds seeking alternative routes to market.”
He added that the firm's success had been driven by team execution, tech adoption, and the ability to manage complex, layered transactions.
