Lack of housing but an abundance of property development finance

Lack of housing but an abundance of property development finance

9:27 AM, 23rd March 2016, About 8 years ago

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developmentThere is a frighteningly lack of housing in the UK and the highest demand for houses for 14 years. This along with the fact that base rate has been held at an all-time low for a full 7 years and the fact that the Government has confirmed that Permitted Development Rights (PDR) are here to stay, provides an ideal time for developers to build the much needed houses.

Whilst the High Street Banks are still conservative when financing anything speculative, the good news is that there is a plethora of other lenders that offer far more flexibility. Development finance is available for a wide range of developments. Some development loans are straight forward, whilst others are a lot more complex and require both initiative and flexibility to get them completed. There is an extensive panel of lenders we work with that have a wide range of products.

Below is a list of the types of funding that are available, all of which have their own criteria and requirements.


  • 100% funding with a Joint Venture Partner (JV) who will share in the profits
  • 100% funding where you have equity available in other properties
  • Stretched senior debt up to 90% of all costs
  • 90% of all costs using both senior debt funding and mezzanine finance
  • 85% of all costs based on interest only
  • Rates starting at 3.25% above base rate (0.5%)
  • Staged drawdowns – interest only charged stage payment is drawn
  • Interest added and rolled up into the loan


Each loan application is considered on its own merits, as the different types of loans have bespoke requirements, not all products suit all developments. However with the large selection of lenders no available we are able to source development finance for for most projects.

Contact Malcolm Jones

Commercial Finance, Development Funding and Bridging Finance

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