May 2026:
In his latest piece for The Intermediary, Daniel Benton explores how the private credit market is maturing after a period of rapid growth — and what lenders and investors should expect as capital becomes more selective and underwriting standards come under greater scrutiny.
Recent coverage of the UK bridging and development lending market has rightly highlighted growing concerns around underwriting standards, governance and transparency — and Daniel argues these failures are not the problem in themselves, but the signal of something deeper.
Private credit has moved from a niche strategy to a core allocation for both institutional and private investors. In real estate, particularly in UK bridging and development, that growth has been rapid. What was once a specialist corner of the market now feels increasingly crowded — with attractive yields, asset-backed security and the perception of downside protection drawing capital in. As competition has intensified, discipline has not always kept pace.
The consequences are visible: more aggressive pricing, deals being pushed out more widely, and in some cases a greater focus on getting capital out than on sound underwriting. In a competitive environment, due diligence gets compressed, structures become more complex, and robustness is compromised. Weaker structures and underwriting shortcuts are being exposed — some lenders will adapt, others will not.
The next phase of the cycle, Daniel argues, is unlikely to be defined by growth. It will be defined by differentiation. Capital will become more selective, with investors focusing less on headline returns and more on track record, governance, and alignment. Counterparty risk — often overlooked during periods of expansion — will move to the forefront of decision-making.
For lenders and investors alike, the market is entering a more testing phase. Access to capital will no longer be the differentiator. Discipline will.