"Recent large-scale forward-funded PBSA transactions and major BTR pipeline commitments signal confidence returning to the living sector. And developers and funders are both adapting"
- Sam Lewis - Heligan
The latest UK Real Estate report from Heligan Group has highlighted that the UK property market is showing signs of stabilisation after two years of turbulence, with house prices rising 2.8% year-on-year.
According to the findings, developers are increasingly turning to forward funding to secure capital for large-scale residential and living sector projects, driven by renewed institutional interest and the need for financial certainty.
Build-to-Rent (BTR), Purpose-Built Student Accommodation (PBSA), and the industrial and logistics sectors remain the most resilient areas of UK real estate. While high borrowing costs and regulatory challenges have slowed development starts, forward funding offers a reliable alternative, enabling projects to move forward without relying on volatile open-market conditions. Institutional investors, particularly pension funds and long-term real estate platforms, are taking the opportunity to acquire income-producing assets at early-stage pricing.
“The second half of 2025 marks a turning point for the UK property sector, and we’re seeing tentative but genuine signs of recovery, supported by a more stable rate environment and increased policy intervention, " comments Sam Lewis, director of debt advisory at Heligan Group. "Developers and investors are recalibrating their strategies to match a market that is slowly regaining balance. As the traditional debt markets have tightened, developers are increasingly looking to forward funding to bridge the gap between ambition and liquidity. Institutional capital has recognised this shift and is responding decisively."
He added, “Recent large-scale forward-funded PBSA transactions and major BTR pipeline commitments signal confidence returning to the living sector. And developers and funders are both adapting. For developers, success now hinges on presenting financially robust, well-structured proposals with clear planning and risk management. For forward funders, the advantage is selectivity, as they can now choose the best schemes in the best locations. The key to success for both developers and investors is collaboration and transparency.”
The report also highlights the evolving role of debt advisory services. With the growth of alternative lenders, family offices, and private debt funds, bespoke financing solutions are becoming increasingly important. Heligan’s Debt Advisory division has observed a notable rise in mandates from developers seeking capital and investors looking to deploy funds into structured opportunities.
Lewis concluded, “Put simply, developers must now put their best foot forward the first time. Forward funders expect clarity, credibility, and commitment. And those who can demonstrate this will find that capital is still available, even in a challenging macro environment. The forward funding resurgence will remain a defining feature of the real estate finance landscape into 2026, as the market transitions from caution to selective confidence.”
