As we wrap up 2025 and look ahead to the new year, we’d like to start by saying a genuine thank you to the Yorkshire Asian Business Association and all its members. Your support, conversations, and engagement this year have meant a great deal to us. It’s been a pleasure connecting with so many forward-thinking businesses across the region, and we’re excited to continue building those relationships into 2026.
With that in mind, we’ve taken one final look at the latest OBR Economic and Fiscal Outlook, and the story it tells is a positive one. For Northwest investors and SME developers in particular, 2026 has all the signs of being a year full of opportunity.
The OBR expects the Bank Rate to ease from 4% to roughly 3.6% by the end of 2026. Even a gradual shift like this can make a meaningful difference. As borrowing becomes cheaper, previously marginal sites start to become viable again.
For Invest & Fund, that means more high-quality projects coming to the platform. For our lenders, it means greater choice and stronger diversification. And for the SME housebuilders we support, many of them active across the Northwest, it creates the breathing room they need to plan, build, and grow.
Residential investment will be pretty steady in 2025, but from 2026 it gathers real momentum, with the OBR forecasting around 7% growth by 2027 and 2028. When development activity ramps up, mainstream banks rarely move quickly enough, and alternative finance becomes even more valuable. This is especially relevant in the Northwest, where demand for homes is high, pipelines are strong, and experienced SME developers are ready to hit the ground running once the conditions align.
The OBR expects a noticeable uplift in housing supply from 2027, driven by planning reform. But the groundwork for that starts much earlier, likely in 2026, as developers secure permissions and line up new sites. For investors, this translates into more shovel-ready opportunities and more borrowers seeking flexible funding options. Exactly the space in which P2P finance excels.
The OBR is forecasting steady, predictable house-price growth of around 2.5% a year from 2026 onwards. This stability supports borrower exit strategies, makes GDV assumptions more reliable, and helps ensure strong loan security for our lenders.
One of our biggest strengths heading into 2026 is the commitment of our lender community. Engagement and reinvestment have remained consistently strong, and the support we’ve received from networks like YABA has been invaluable in helping us connect with the right people and opportunities.
Falling rates, rising development activity, planning improvements, steady prices, and ongoing demand all point to an auspicious year ahead. For investors seeking well-structured, asset-backed opportunities, and for borrowers seeking flexible, dependable financing, 2026 could be one of the strongest entry points in recent years.
And once again, to YABA and all its members: thank you for your support throughout 2025. We look forward to working together and helping more Northwest developers bring much-needed homes to the market in 2026