A total of 218 deals were completed across the business, with London representing 42% of transactional activity by number of deals.

Key figures also show that lending on offices surged to £118m across 15 deals while development funding increased by 273%.

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.

Hotel and serviced apartments rose significantly for the period, as did office activity. Meanwhile, PBSA grew by 9% compared to the previous year when no deals of this kind were completed.

The brokerage said that BTL lending growth was fuelled by developers becoming accidental landlords and rental yield growth improving refinancing options.

The changing appetite of the banks is also driving an uptick in commercial lending — which increased by 110% in terms of loan volume — with products and rates markedly improved YoY, according to Arc & Co.

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Andrew Robinson, CEO at Arc & Co (pictured above, left), commented: “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 — such as PBSA, co-living, and senior living — rather than traditional build-to-sell schemes, which have struggled amid a cooling residential sales market and the introduction of legislation such as the Building Safety Act.”

Edward Horn-Smith, managing director at Arc & Co, added: “Over the past year, one of the most striking trends was the sharp increase in available liquidity: 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 by offering higher LTVs, relaxing ICRs, and reviewing loan covenants to encourage borrowing. This will result in private funds seeking alternative routes to market.”