Development Finance – What Are My Options?

The ability to successfully deliver a profitable development project depends on getting the right funding arrangements in place. The decision on how to fund your project is one of the most significant challenges facing developers particularly in recent years as the market has reacted to the impact of the pandemic, Brexit, resource issues and rising costs and materials shortages. As always however, the underlying fundamentals of the UK housing market remain unchanged. There continues to be a shortage of homes and therefore opportunities for developers undertake lucrative projects. Ensuring that your project and any finance application can withstand rigorous scrutiny will help increase the potential that you will achieve competitive finance terms. Depending on the nature of the project, timescales, loan to value and exit strategy, there are a number of different types of finance available to developers and we look at those in more detail below.