The UK real-estate sector is showing signs of recovery, with most investors and developers planning to increase investment across key asset classes over the next three years. Alternative lenders already hold a significant share of outstanding commercial real estate loans and are well placed to capitalise on renewed activity.

Key findings from the survey, which have helped underpin the report are:

• Cybersecurity remains a hard barrier – 56% would not borrow from a lender that had recently experienced a cybersecurity breach, highlighting that innovation must be matched by strong cyber resilience.
• Investment intent across assets – borrowers plan to increase investment in commercial office space (67%), multi-family rental property (67%), and industrial property (64%).
• Customer experience influences lender choice – 80% of respondents say they are more likely to borrow from an alternative lender that offers a flexible and innovative customer experience.
• Responsiveness gap – 60% say their ideal lender relationship would be responsive, but only 40% rate their current lender as responsive.
• Technology adoption and expectations – 63% would be more likely to borrow from lenders using AI for customer service; 58% value automated application processing as a customer experience feature; 44% rate their current lender as average or poor at using technology innovatively.
• Alternative lenders have momentum – having already attracted borrowers with data-driven deals, alternative lenders hold 43% of outstanding CRE loans and are in a strong position to seize further opportunities.

The report outlines how these lenders can leverage their technical and data-driven strengths to gain a market advantage by enhancing customer experience while maintaining robust risk controls.

Walker Morris will use the findings to drive market conversations, demonstrate the firm’s expertise in alternative lending and technology-enabled finance, and generate commercial opportunities for clients and partners.

Discussing the research and report launch, James Crellin, Partner in Banking & Finance, said, “The resurgence in UK real-estate activity presents a clear window for alternative lenders to expand. Our research shows investors want speed, transparency and the smart use of data, but they will not sacrifice trust.

“Lenders that embed AI and automation into customer journeys while keeping advisers front and centre, and that invest in cyber resilience, will be best positioned to win business as the market recovers.

“This report reframes the debate on alternative lending from market share to how lenders win and keep clients. Borrowers want speed, transparency and smart data use, but not at the expense of security or personal advice.

“Lenders should make customer experience a strategic priority: deliver real‑time visibility, automate routine decisions to cut turnaround times, and use AI to enhance underwriting and service while keeping human advisers for complex cases. Every innovation must be backed by strong cyber controls and clear governance.

“Lenders that combine targeted automation, responsible AI and sustained human engagement with demonstrable cyber resilience will turn intent into business and secure lasting advantage.”

To access the full Alternative Lenders Report, please visit: Gaining an edge in real-estate finance – Walker Morris

[i] Walker Morris surveyed 100 UK real-estate investment decision-makers in September 2024 in partnership with Momentum ITSMA.